Nutritional Growth Solutions reaches healthy heights in H1 FY22, future growth looks strong
Health & Biotech
Health & Biotech
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Nutritional Growth Solutions has completed a milestone H1 FY22 which has set it up for future strong growth in key markets globally.
Paediatric nutritional products provider Nutritional Growth Solutions (ASX:NGS) has reported strong momentum for its H1 FY22 highlighted by significant advancements in its key markets.
NGS reported revenue of US$1.39 million, up 16% compared with the previous six months of US$1.2 million but down 25% on pcp on H1 FY21 of US$1.8 million.
The fall in pcp was attributed to inventory shortages in the first four months of 2022 and the timing of an initial order from Italy last year.
Revenue from sales of its Healthy Heights products of US$1.39 million was up 5% compared to H1 FY21 excluding Italy (US$1.32 million).
The rise in Healthy Heights revenue was despite stock shortages during the first month of H1, which have now been resolved.
NGS incurred a loss of US$2.2 million for H1 FY22, an improvement on pcp of US$2.3 million in H1 FY21.
The company said the loss reflects its continued commitment to investment in research, marketing, and distribution to ensure the business is positioned to further scale.
CEO and managing director Liron Fendell said the company had advanced significantly in key markets throughout H1 FY22, which it will build upon in H2.
“As NGS continues to grow in key markets, we will continue to focus on our retail expansion in the United States which is tracking ahead of schedule with Healthy Heights to be available in over 420 stores by September,” Fendell said.
“Our two manufacturing facilities in New Zealand and Utah, are fully equipped to ensure adequate stock levels of all Healthy Heights products for our global distributors for the remainder of 2022, due to the sourcing of a large quantity of high-quality whey protein from Fonterra.”
She said to maintain NGS’s growth trajectory the company is finalising several clinical trials that have been in progress for the last 12 months.
“We expect to launch additional products to the Healthy Heights range that are clinically proven to support child growth development,” she said.
“Lastly, we will continue to grow in line with our three-pillar growth strategy, with the aim of growing Healthy Heights into a global household name in child nutrition.”
NGS also announced today that it has appointed previous managing director Asia for Blackmores (ASX:BKL) Peter Osborne as a non-executive director to its board, effective immediately.
Based in Taiwan, Osborne has been a strategic advisor to NGS for China and Southeast Asia since May.
Osborne will replace Dr Anton Uvarov who will step down effective today to focus on other business interests.
He has also served as Australian Senior Trade Commissioner in Beijing, Shanghai, Hong Kong, and Taiwan.
“While Peter has provided valuable insight to the company in the past three months with his experience in commercialisation and driving growth in China and Southeast Asian markets, his appointment will significantly enhance our board’s business and distribution capability more broadly,” NGS chairman David Fenlon said.
This article was developed in collaboration with Nutritional Growth Solutions, 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.