That was compared with a $1.7m profit the previous year, while earnings before interest and tax were a loss of $2.63m compared with a profit of $4.3m last year.
No dividend was declared for the year ended June 30.
In an announcement to USX market this week, the company said demand remained flat due to excess wool throughout the supply chain coupled with subdued consumer spend.
It said its EpicFibre strategy, launched late in FY24, provided a clear pathway back to profitability and growth, with long-term stability as a priority.
Bank interest costs of $1.68m were incurred, reflecting higher interest rates and stock being held for a longer period. Total operating revenue was $130.5m, a 24% reduction from last year.
Cash from operations improved in the year with a net cash inflow of $5.91m, compared with a net cash outflow of $7.68m in the previous year. The improved operating cash flow allowed the group to repay some of its trade finance facility, reducing borrowings by $4.5m in the year.
The total volume of wool sold dropped by 9500 bales or 7.6% compared with last year, with a reduction of 10,700 fine wool bales and an increase of 1200 strong wool bales.
While the impacts of the economic downturn persisted, there were market segments starting to show signs of recovery.
NZMC was focused on securing opportunities where they existed and making headway in moving excess fibre through the supply chain.
There was promising growth through Asia, with Japan and China as key highlights.
The Asian markets contrasted with the EU and luxury segments where consumer behaviour and price sensitivity were roadblocks to be overcome before significant price movement could be expected.
Green shoots of demand could be seen in the active outdoor, athleisure and furnishing segments and NZMC was working to increase volumes in those markets with both existing and new customers.
