Australian health and wellness company Wellnex Life has announced a 1099% increase in revenue to $8.56 million in the six months to December 2021, compared with the previous corresponding period.

Wellnex Life (ASX: WNX) released their half year FY22 result on Monday with the company highlighting that they are on a pathway to profitability following last year’s strategic turnaround. 

“We’re pleased to have grown revenue substantially in a time of challenging market dynamics and can see the path to profitability ahead,” Wellnex Life CEO George Karafotias said.

Wellnex saw a reduction in net losses to $2.15 million, down 87.2% compared with the prior corresponding period, with the company noting that this included circa $750,000 in one-off expenses.

The company also pointed to enhanced margins as Wellnex-owned brands start to contribute to a larger portion of revenue.

The result comes amid a period of growth and transformation for Wellnex Life, which acquired leading health products company Brand Solutions Australia (BSA) – a national sales and marketing agency with a distribution network spanning Australia’s largest pharmacy and grocery chains – in April last year.

This acquisition transformed the company into a major participant in the Australian health and wellness space, opening new distribution channels and capabilities. 

It has been a busy six months for Wellnex Life, with the launch and licensing of six new brands through the period, including the formation of a joint venture with Australian Dairy Nutritionals (ASX: AHF) to distribute Australia’s first locally made organic A2 infant formula. This agreement was formalised in February and will see distribution of the Ocean Road Dairies infant formula range with Chemist Warehouse nationally, with ranging targeted by the end of June.

In a joint venture with pharmacy giant Chemist Warehouse, the company launched a first-of-its-kind Therapeutic Goods Administration (TGA) approved soft gel liquid paracetamol product under the Wagner Liquigesic brand, with ranging commencing in October 2021 and strong initial sales recorded.

Other brands developed and licensed during the period included The Iron Company, Wakey Wakey, Performance Inspired and Pharmacy Own.

The company said the addition of new brands along with the expansion of its existing business should see an uplift in margins and revenue growth – keeping Wellnex Life on track to realise or exceed its FY22 target of $21 million in revenue.

Join Wellnex Life CEO George Karafotias for an investor briefing next Wednesday, 9th March, at 12pm (AEDT). Click here to register. 

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

Sources

• Wellnex Life ASX Announcement, Half-Year Financial Report – December 2021 Period of Transformation and Growth
• Brand Solutions Australia, What Makes Us Different
• Brand Solutions Australia, Channels
• Stockhead, Off and running: Chemist Warehouse to distribute Wellnex JV’s market-topping range of organic A2 infant formula