BIG Smiles as Wellnex Life finalises Mr. Bright deal
Health & Biotech
Health & Biotech
Wellnex Life has finalised a key acquisition as it looks to build on its strengthening position in the health and wellness sector.
Global facing wellness brand and product manufacturer Wellnex Life (ASX:WNX) has finalised the acquisition of premium teeth whitening brand, Mr. Bright, enabling the company to enter the growing oral cosmetic and care market.
The acquisition announced in September will also provide WNX with immediate uplift in revenue and profitability.
Mr. Bright has had limited distribution in the Australian market to date with WNX seeking to expand domestic distribution to further increase its sales and profitability.
WNX has had a strong start to FY23 with YTD revenue for FY23 (1 July – 30 November) up 57% on pcp to $10.85 million.
WNX continues to see growth across its whole business in both its wholly owned brands and contract manufacturing orders and reconfirms its guidance of $29 million revenue for FY23.
Revenue and margins are expected to accelerate for H2 FY23 and beyond with the launch and growth of new brands and products.
The strong start to FY23 will be further strengthened with new brand and product launches in FY23.
Pharmacy Own and is on track to launch in January 2023, bringing a strong offering of over-the-counter (OTC) products to market that will provide consumers equivalent efficacious products to the major brands currently found in the Australian market.
WNX has entered into an exclusive distribution agreement with CH2, Australia’s only fully integrated pharmaceutical and medical consumable distributor, which services over 2,500 pharmacies.
This agreement with CH2 will provide Wellnex with a large distribution network to generate substantial sales and margins.
WNX, through its pivotal joint venture (JV) with OneLife Botanicals, is progressing multiple medicinal cannabis products for the growing Special Access Market (SAS), with a planned launch in January 2023.
WNX is also progressing its over-the-counter Schedule 3 (S3) registration, with the aim to be one of the first to obtain an S3 approval in the Australian market.
S3 registered products can be sold directly to consumers by a pharmacist without requiring a prescription.
TheSet.Co launch was announced in November and has allowed WNX to enter the $1.5 billion online health and wellness market for self-care products.
The new e-commerce brand, with an initial 19 products, will provide the opportunity to grow revenue as well as enhance margins for WNX.
WNX CEO George Karafotias said the company has had a strong end to CY22 and it is pleased to finalise the acquisition of Mr. Bright.
“The acquisition will provide immediate uplift to Wellnex’s revenue and margin, and we are seeking further enhancement by expanding the distribution of these products through Australia,” he said.
“We expect the launch of Pharmacy Own and SAS medicinal cannabis products in January 2023 will further strengthen our position in the growing health and wellness market and add value for shareholders.”
This article was developed in collaboration with Wellnex, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.