Wellnex Life boosts revenue 1100% in H1 amid transformation

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.

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


This Week’s News


2 July 2024

Aussie mining billionaires backing mammoth copper project with World’s Best Geo’s


21 June 2024

Australian Mining Pioneers MDF Global Forge Landmark Deal with Alaska’s Traditional Owners for a 5 Year Fully Funded Critical Minerals Accelerator Program


13 June 2024

Breaking News!!! Plutonic’s Kris Butera

General Advice Warning

Any advice provided by Reach Markets including on its website and by its representatives is general advice only and does not consider your objectives, financial situation or needs, and you should consider whether it is appropriate for you. This might mean that you need to seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG)

including the Privacy Statement and any relevant Product Disclosure Statement or Prospectus (if one is available) to understand the features, risks and returns associated with the investment.

Please click here to read our full warning.