Off to a good start: Wellnex Life records 54% revenue increase in H1 FY23
Health & Biotech
Health & Biotech
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Wellnex Life is starting 2023 on a high with a strong H1 FY23 result, product launches, and a strengthening presence in Australia’s medicinal cannabis sector.
Global facing wellness brand and product manufacturer Wellnex Life (ASX:WNX) has recorded a 54% increase in revenue for H1 FY23 of $13.2 million (unaudited) compared to pcp of $8.6 million.
WNX reaffirms its previously announced guidance of $29 million for FY23. WNX anticipates revenue and margins to continue to accelerate for H2 FY23 through:
The increase in revenue of 54% is reflective of the strong growth across the whole business, but primarily growth in WNX’s wholly owned brands and contract manufacturing orders for its products.
Pharmacy Own will bring a strong offering of over the counter (OTC) products to market that will provide consumers equivalent effective products as an alternative 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 WNX with a large distribution network to generate substantial sales and margins.
WNX, with its pivotal Joint Venture (JV) partner OneLife Botanicals, is progressing multiple medicinal cannabis products for the growing Special Access Market (SAS), with a planned launch in the first quarter in FY23.
The SAS market in Australia was estimated to be worth over $400 million in 2022 compared to $230 million in 2021, an increase of 73%.
This rollout will coincide with the continuing progress of WNX’s 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.
The launch of the TheSet.Co, announced in November 2022, has enabled WNX to enter the $1.5 billion online health and wellness market for self-care products (Frost & Sullivan –The Online Retail Market July 2022).
The launch of the new e-commerce brand, with an initial 19 products, will provide the opportunity to grow revenue as well as enhance margins for the company.
WNX CEO George Karafotias said the first half of FY23 has been pleasing for the company with great uptake of its wholly owned brands and products.
“Our business model of bringing innovative brands and products first or fast to market in the growing health and wellness market is producing results and gives us great confidence moving forward,” he said.
“The second half of FY23 will bring more opportunities to continue to grow our revenue and margins with some exciting brand and product launches, including the launch of medicinal cannabis products for the SAS market in Australia that is growing exponentially.”
This article was developed in collaboration with Wellnex Life (ASX:WNX), 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.