Nutritional Growth Solutions has delivered a milestone quarter, despite having to navigate stock shortages making inroads with its US and Asia Pacific expansion.

Paediatric nutritional products provider Nutritional Growth Solutions (ASX:NGS) has delivered a solid Q1 FY22 despite stock shortages, driven by continued demand for its Healthy Heights products in the US and China.

Quarterly revenue was US$631K, up by 10% compared with December 2021 quarter but down on the prior corresponding period (pcp), due to the Healthy Heights launch in Italy in 2021 which saw 12 months of orders processed in an initial order.

Quarterly revenue in the US from sales of Healthy Heights products are up 4% on pcp, despite having to navigate stock shortages over the quarter.

NGS said supply chain shortages in the USA have now been resolved with a once-off, large order of high-quality whey protein from Fonterra Co-operative Group.

The company’s cash balance as at 31 March 2022 is US$3.1 million, which it said will provide flexibility for it to execute its growth plans.

 

Walmart sales start as part of US retail expansion

NGS’s Healthy Heights shake mixes started sales towards the end of Q1 on Walmart’s ecommerce platform which receives ~100 million visitors each month, as part of the company’s plans to gain a strong US foothold.

The complete Healthy Heights product portfolio is also now listed on leading product discovery and sourcing platform, RangeMe.com.

The platform is used by over 10,000 retailers including Wholefoods, CVS Pharmacy, Target and 7-Eleven.

 

New Zealand manufactured product shipped to Asia Pacifics

NGS completed the manufacturing and packaging of Healthy Heights Grow Daily 3+ with its manufacturing partner NIG Nutritionals in New Zealand during Q1.

The product has been shipped to distributors in Asia Pacific who will start selling the product through leading e-commerce platforms including Fortune 500 company and one of China’s largest online retailers by transaction volume and revenue, JD.com (Nasdaq:JD).

The products are also being sold on multinational e-commerce platforms Lazada Shopee, and TikTok, as well as the second largest cross-border e-commerce platform, Koala, and one of the world’s largest community e-commerce platforms, Little Red Book.

 

Industry veteran David Fenlon appointed non-executive chairman

During the quarter NGS appointed David Fenlon as independent non-executive chairman of the company.

Fenlon has more than 30 years’ experience in retail and consumer goods across Europe, Australasia and North America.

Until very recently Fenlon was the managing director and CEO of beauty and wellness business BWX Limited (ASX: BWX). He was previously managing director (Australia & NZ) for Blackmores Limited (ASX: BKL).

In addition, Fenlon is currently a non-executive director of Quest for Life Foundation, an Australian not-for-profit organisation dedicated to supporting people through personal traumas.

 

Growing a brand into a household name ‘no easy feat’

CEO Liron Fendell said the quarter had been significant for the company. She said its US expansion was boosted by the company recently winning the Buyers Choice Award at the ECRM retailers’ event.

“Our President of North America Stephen Turner has had a full schedule, meeting with numerous quality retail partners across the country on ranging options for Healthy Heights,” she said.

Fendell said doctors at world-renowned Israel’s Schneider’s Medical Centre, who for more than 20 years have been undertaking researching and developing the range, recently undertook a review of the nutritional profile of its KidzShake range.

She said updates were made to the nutrient levels and post reporting period the KidzShake range has been relaunched under the new branding and Healthy Heights umbrella as Healthy Heights® KidzProtein.

Fendell said there are now 15 products in the new KidzProtein range including a vegan option to support the nutritional needs of the 2 in 10 children with intolerance to dairy-based products in the United States.

“Growing a brand into a global household name is no easy feat,” she said.

“The last stages of our rebrand are falling into place, and we have doubled our SKU offering over the last few months.”

Fendell said the company was well positioned to reach its goal of ensuring children around the world have access to healthy products that support their growth development.

“Under new leadership of industry veteran David Fenlon, we have never been in a better position to continue the execution of our three-pillar growth strategy of new territories, products and sales channels,” she 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.

Read MoreHealth

Featured Companies

You might be interested in