Launching into 2023: Health and wellness biz targets continued growth

Concerns over a new COVID-19 wave are spreading like the virus did in an unforgettable 2020. New infections recently rose 31% nationally, possibly preluding Australia’s fourth wave of the devastating virus and begging the question – could ‘health and wellness’ be more important?

Concerns over a new COVID-19 wave are spreading like the virus did in an unforgettable 2020. New infections recently rose 31% nationally, possibly preluding Australia’s fourth wave of the devastating virus and begging the question – could ‘health and wellness’ be more important?

Could it also result in another wave; that of increased demand for health and wellness products – which companies operating within the $10.7 billion (2021 IQVIA Scan Data from February 2022) sector would be wise to capitalise on?

In that respect, health and wellness brand innovator Wellnex Life (ASX: WNX), has had a fair outing in the first four months of FY23 (1st July to 31st October 2022), reporting revenues of $8.8 million – 60% more than the company earned in the same period last year.

Outside of revenues, the customer-focused brand and product company has experienced considerable growth across its portfolio with a slew of product launches since the start of the year.

The company successfully launched Mark Wahlberg’s Performance Inspired sports supplements brand and Australia’s first Organic A2 infant formula brand, Ocean Road Dairies in a joint venture with Australian Dairy Nutritionals, and now available on Chemist Warehouse shelves.

Wellnex’s new e-commerce brand and platform, TheSet.Co, rounds up FY23’s new entries in the company’s portfolio as a bid to gain a foothold in the large and growing $1.5 billion online health and wellness market for self-care products.

“We continue to experience growth across both our wholly-owned brands and contract

manufacturing orders, and anticipate these areas will continue to grow for us,” Wellnex Life CEO George Karafotias said.

We have 19 products already listed on TheSet.Co, which will provide Wellnex with the opportunity to grow revenue as well as enhance margins in a business-to-consumer channel.”

More avenues to extend the business through FY23

On the back of its ‘strong start’ to FY23, Wellnex sees the rest of the financial year being supported by additional brand and product launches.

One of these launches includes Pharmacy Own, a wholly-owned brand of Wellnex’s which will be available in market January 2023.

Subject to shareholder approval at its AGM on 29 November, the company expects to acquire teeth whitening brand Mr. Bright – which has considerable revenue and margins, and which Wellnex will look to significantly improve with its extensive distribution channels.

Australia’s Therapeutic Goods Administration’s (TGA) 2020 decision to derestrict the sale of low-dose cannabidiol products over the counter in pharmacies – unlocking a major new opportunity in the market.

Wellnex is campaigning to become one of the first to offer a product in the category in Australia and has the three main ingredients to win the race – proven knowledge of the TGA approval process, vast distribution networks and manufacturing capability.

The company is aiming to enter the Special Access Scheme (SAS) market in early 2023 and aiming for an Schedule 3 (S3) registered product by end of 2023. 

To stay up to date with news and announcements from Wellnex Life, register your details on the company’s investor portal.

 

Reach Corporate provides Corporate Advisory Services to WNX and have been engaged by them to manage their investor communications.

Past performance is not a reliable indicator of future performance.

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