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Aussie wellness biz launches into FY23 with healthy pipeline

August 3, 2022

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Aussie wellness biz launches into FY23 with healthy pipeline

A boost to cash receipts and purchase orders in the last quarter has given an Aussie health and wellness business new vigour – but it’s the company’s upcoming product launches that is providing the real spring in its step.

A boost to cash receipts and purchase orders in the last quarter has given an Aussie health and wellness business new vigour – but it’s the company’s upcoming product launches that is providing the real spring in its step.

Following recent news of a joint venture with cannabis manufacturer OneLife, Wellnex Life (ASX: WNX) has reported “significant revenue growth” across the business and “strong uptake” in its wholly owned brands for the June 2022 quarter.

Cash receipts for the period were $4.7 million – up 31% compared with the previous quarter.

There was also an additional $4.6 million received in purchase orders for its liquid paracetamol product, with receipts to be received in the September 2022 quarter.

“We have been very pleased with our progress, results and successes in FY22, and excitement is high for what’s in store for FY23,” Wellnex CEO George Karafotias said.

“As part of our strategy to drive continued growth in sales, and as a proactive step to mitigate potential supply chain issues that have been affecting companies globally, Wellnex invested significantly in inventory during the June quarter.”

The company recorded a net operating cash loss for the period of $3.48 million, largely driven by the bolstering of inventory holdings as well as preparation for the October launch of Mark Wahlberg’s Performance Inspired sport supplement brand in Chemist Warehouse stores.

Other launches will include Australia’s first produced Organic A2 infant formula brand, Ocean Road Dairies, in September; an e-commerce platform with a new online brand in October; and Pharmacy Own in December via an exclusive national distribution agreement with healthcare distributor CH2.

“With our strong pipeline of product and brand launches along with sustained sales of Wellnex-owned brands, we’re expecting continued revenue growth, and substantially increased margins from the growth of our in-house brands,” Mr Karafotias said.

The June quarter saw “significant progress” made in growing Wellnex-owned brands, with Wakey Wakey and The Iron Company now available across all major pharmaceutical and grocery retailers.

The release of Wellnex’s quarterly report follows the announcement of a 50/50 JV with OneLife to pave the way for the manufacture, distribution and sale of cannabis and hemp-based products in a global market currently worth A$37 billion.

Wellnex is looking to sell medicinal cannabis products without a prescription through the pharmacy channel by the end of 2023, with the registration process underway.

To stay up to date with the latest Wellnex Life news and announcements, register your details on the Wellnex Life investor centre.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Wellnex Life Limited and will receive fees for its services.

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