Year in review: Wellnex builds revenue and pumps up portfolio

In 2021, possibly spurred by heightened awareness caused by COVID’s onset, Australia’s health and wellness market became the third-largest market for health and wellness, behind the US and China.

In 2021, possibly spurred by heightened awareness caused by COVID’s onset, Australia’s health and wellness market became the third-largest market for health and wellness, behind the US and China.

Identifying the opportunity, Aussie health and wellness business Wellnex Life, previously Wattle Health, recommenced trading in July 2021 with a refreshed strategy of manufacturing or licensing products and bringing them ‘first or fast’ to the $10.7 billion market (2021).

Wellnex Life’s calendar year 2022 saw the company launch a slew of products and ink crucial deals, and much of these achievements were the product of an eventful second half of 2021.

“It’s been a really busy year for Wellnex Life, we launched five new brands … they’re achieving great results, which is really increasing our revenue,” Wellnex Life CEO George Karafotias said.

Image: Wellnex Life product range

Off to a good start in 2021

Following its relisting under the ticker ASX: WNX, the company launched Australia’s first Paracetamol liquid soft gel range under a joint venture with Chemist Warehouse, followed by the distribution of 100% Wellnex-owned brands Wakey Wakey and The Iron Company in Coles.

It’s worth noting that Wellnex operates with its own branding division, Brand Solutions Australia – a business it acquired for $5.3 million in early 2021 and an element the company believes is critical to its ability to cut through the market.

Targeting Australia’s $1.3 billion sports nutrition market, the company also secured Chemist Warehouse ranging across Australia and New Zealand for a leading US nutrition and supplement brand co-founded by Hollywood A-lister Mark Wahlberg through a licensing agreement.

“Our key differentiator is the comprehensive nature of our product and brand development, manufacturing and distribution capabilities,” Mr Karafotias said.

“We have the ability to identify market trends, build a product that addresses consumer needs, effectively brand it to capture attention – and then range it nationwide across leading retailers first or fast, or both.”

The company closed CY21 entering a joint venture with Australian Dairy Nutritionals Group to launch Australia’s first organic A2 infant formula range and launching Pharmacy Own – a wholly owned brand set to be distributed across 2,500 pharmacies nationwide.

Source: Wellnex Life – key milestones


2022: A big year for partnerships and revenue growth

Moving into 2022, the company followed through with the launch of the aforementioned organic A2 infant formula range under the Ocean Road Dairies brand now ranged through Australia’s largest retailer of infant formula, Chemist Warehouse.

At the half (financial) year mark, the company demonstrated the results of its ‘first or fast’ strategy recording $8.56 million in revenue, up 1,099% compared with the prior corresponding period (PCP) and a $2.5 million loss, down 87.2% for the same period.

Considered by the company as one of its biggest achievements, in March 2022 Wellnex Life signed an agreement with Haleon (formerly GlaxoSmithKline) to supply Australia and New Zealand with its aforementioned soft gel liquid analgesic, for a minimum term of three years.

Aside from Haleon being one of the world’s largest and leading global consumer healthcare companies, Wellnex Life believes the agreement highlights its model of bringing innovative and in-demand products to market in a capital-efficient way.

“This agreement (with Haleon) is a testament to the team at Wellnex Life and specifically Brand Solutions Australia,” Mr Karafotias said.

“The fact that a global pharmaceutical giant trusts our company to supply them with our product under our partnership arrangement is a testament to the vision of the business and the quality of people working at Wellnex.”

The company continued its upward revenue trajectory for the March 2022 quarter, recording $3.6 million (up 606% on the PCP) with an additional $2.1 million in purchase orders for its 

liquid paracetamol product.


Source: Wellnex sales momentum – select products


New ventures with strong shareholder, investor and partner support 

Mid-year, Wellnex Life successfully secured $6.2 million via a convertible note to fund the company’s foray into the untapped over-the-counter medicinal cannabis space and the launch of TheSet.Co.

TheSet.Co is an e-commerce platform with an initial 19 products and will enable Wellnex to enter the $1.5 billion and growing domestic online sales market for self-care health and wellness products.

Pursuant to the former, Wellnex forged a joint venture with OneLife Botanicals for the

manufacture, distribution and sale of cannabis and hemp-based products.

The joint venture will allow Wellnex to be one of the first to market with a registered medicinal product under S3 – a prospect further enforced by OneLife Botanicals’ acquisition of MediPharm Labs Australia, one of the country’s leading cannabis manufacturing facilities. 

“Make no mistake, we think that this market will be big and we are strongly focusing on the commercial launch,” Mr Karafotias said in his latest AGM address.

Later in the year, the company acquired teeth whitening brand Mr. Bright – a profitable (as at 9th September) company with an annualised revenue of ~$4 million and normalised FY22 EBITDA of ~$800,000 – which it expects will increase Wellnex’s overall margins.

Wellnex Life undertook another capital raise via a share purchase plan managed by Reach Markets to further progress the OneLife Botanicals JV and finance the inventory for growth expected from new product launches.

A total of $2.815 million was raised along with an additional $3.15 million strategic investment, of which $3 million was by cornerstone investor Homart Pharmaceuticals.The latter is expected to sharpen Wellnex Life’s manufacturing and product edge while augmenting its export network.

“The total funds raised ($5.965 million) will enable us to progress on our goal to be one of the first companies to offer an over-the-counter medicinal cannabis product in the Australian market,” Mr Karafotias said.

“Our focus moving forward is on getting more of our revenue from our own brands, increasing our margins and getting to that profitability stage where the company becomes self-sufficient,” the CEO said about the company’s future plans.

“We’re developing some new innovative products that you’ll see come out in financial year ’23”


Source: Wellnex Life – revenue

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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