Health and wellness brand and product company Wellnex Life Limited (ASX: WNX) announced its results for the first half of FY23, reaffirming its $29 million revenue guidance for the full financial year.

Revenue for H1 FY23 was $13.2 million (unaudited), a 54% increase when compared with the $8.6 million revenue earned in the previous corresponding period.

The company indicates that while the jump in revenue is reflective of overall business growth, it is primarily due to Wellnex’s decision to focus on wholly owned brands and contract manufacturing orders.

“The first half of FY23 has been pleasing for Wellnex, with great uptake of our wholly owned brands and innovative products,” Wellnex Life CEO George Karafotias said.

“Our business model of bringing innovative brands and products first or fast to market in the growing health and wellness sector is producing results and gives us great confidence moving forward.”

Rolling out into 2023

The company has a slew of product launches locked in for the remainder of the financial year starting with Pharmacy Own, a 100% Wellnex Life-owned brand featuring 20 core products on track to launch in January 2023.

Pharmacy Own brings a strong offering of over-the-counter products that will provide consumers equivalent efficacious products as an alternative to the major brands currently found in the Australian market.

An exclusive distribution agreement with CH2, Australia’s only fully integrated pharmaceutical and medical consumable distributor, provides Wellnex Life with a distribution network of more than 2,500 pharmacies to generate sales and margins.

“[H2 FY23] will bring more opportunities to continue to grow our revenue and margins with some exciting brand and product launches, including the launch of medicinal cannabis products for the SAS market in Australia that is growing exponentially,” Mr Karafotias said. 

The company plans to launch multiple medicinal cannabis products for the fast growing Special Access Scheme (SAS) market in CY23’s first quarter.

According to medicinal cannabis researcher Fresh Leaf Analytics report (H2 2021), the Australian SAS market was estimated to be worth over $400 million in 2022 compared to a  $230 million forecast in 2021, an increase of 73%.

Anticipating the growth of medicinal cannabis in Australia, Wellnex Life is actively pursuing approvals to launch one of Australia’s first prescription-free over-the-counter medicinal cannabis products.

Moreover, the continued growth of Wellnex Life’s e-commerce brand TheSet.Co enables the company to expand its core offerings into the online health and wellness market for self-care products.

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Past performance is not a reliable indicator of future performance.

Sources: 

• Wellnex Life, FY 23 – Half Year Results
• The Market Herald, Wellnex Life (ASX:WNX) launches Pharmacy Own brand
• Fresh Leaf Analytics, Australian Medicinal Cannabis Market Patient, Product and Pricing Analysis