Stellar start to FY23 for Wellnex with revenue up by 60%
Health & Biotech
Health & Biotech
Health and wellness company Wellnex Life (ASX:WNX) is kicking away from the main peloton of the ASX health and wellbeing small cap pack, with its market update revealing revenue up 60% in FY23 compared to pcp.
The global-facing wellness brand and product maker, continues to enjoy growth across the business in both its wholly-owned brands and contract manufacturing orders. WNX boss George Karafotias is anticipating growth in these areas will drive through the rest of the year and well beyond.
There’s a lot of impetus going into this kind of acceleration after the energetic work that went into the last few months.
Wellnex has built a stonking presence in the fast-growing health and wellness market. Then there’s also Australia’s first Organic A2 infant formula brand – Ocean Road Dairies – that’s in a brilliant joint venture with Australian Dairy Nutritionals and their newly launched TheSet.Co e-commerce channel for self-care products.
George’s team have also smashed out a fairly eye-catching approach to the medicinal cannabis space as they aim to be one of the first companies with an S3 approved over-the-counter medicinal cannabis product in Australia.
Quickly then: Here’s a few of the revenue driving moves into brand and product for FY23.
The launch of TheSet.Co was announced just a few weeks back – November 2 – and that provides a platform for Wellnex to jump into the $1.5 billion online health and wellness market for self-care products.
The upstart e-commerce brand has an initial 19 products and can provide the opportunity to grow revenue as well as enhance margins in the revenue-rich and lovely margins of business-to-consumer (B2C) channels.
TheSet.Co is expected to substantially bust out margins of ~45% compared to the traditional retail sales.
Following the largely accurate premise of people got teeth – WNX has its guns trained on acquiring the premium teeth whitening brand Mr. Bright in December (subject to shareholder approval) – that one was announced on 9 September.
Mr Bright opens the oral cosmetic care market for WNX. The prodigious space inserts Mr. Bright and its growing revenue and margins with the Wellnex tools to add some significant velocity across a range of extensive distribution channels.
Wellnex continues to progress the launch of Pharmacy Own, which will be available in market January 2023.
The launch will bring 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.
Wellnex 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 is looking like a cracker. Leveraging the pivotal Joint Venture (JV) with OneLife Botanicals, WNX is about to enter the growing Special Access Market (SAS) with multiple products, and a planned launch in early 2023.
This is in conjunction with progressing over-the-counter S3 registration, with the aim to be one of the first to obtain an S3 approval in the Australian market. And I spoke with George about this a few weeks back, the company enjoying pole position in this very central regulatory space for the local medicinal cannabis market.
WNX has had a string of major successes in the past year as we progress to become a significant player in the health and wellness market, George says.
“Our revenue growth in the first four months of FY23 is up 60% vs PCP – a significant achievement driven, in part, by growth of our wholly-owned brands and contract manufacturing orders.
“We remain focused on launching new brands and products to meet consumer demand, as well as progressing our aim to be one of the first to offer over-the-counter S3 medicinal cannabis products.”
This article was developed in collaboration with Wellnex Life, 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.