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Health & Biotech
Wellnex Life experiences another quarter of strong revenue growth with strong organic growth across brands and several major projects on the cards.
Health and wellness company Wellnex Life (ASX:WNX) has announced another quarter of strong revenue growth with $5.7 million of sales and purchase orders in Q3 including orders for its liquid paracetamol products.
Q3 revenue was up from $3.95 million on the prior corresponding period after revenue growth of ~40% in the month of March compared to March 2021 and excluding purchase orders received in the month.
Wellnex brands Wakey Wakey and The Iron Company, both now stocked in Coles and Woolworths, were strong contributors to the result.
The company said momentum for the two brands has continued into April, with sales in the first week tracking above budget.
Wellnex said the successful performance of Wakey Wakey and The Iron Company was aided by strong distribution gains in more than 2,000 pharmacies Australia-wide and major national grocers Coles and Woolworths.
The company has established distribution networks with all major pharmacy and grocery channels nationally, including Chemist Warehouse, Priceline, Sigma, Symbion, Coles and Woolworths.
Wellnex expects increased distribution of Wakey Wakey and The Iron Company products will see continued revenue growth in future quarters.
Wellnex is also seeing strong growth across its extensive range of health and wellness products, which is expected to accelerate during the remainder of the 2022 calendar year, aided by a pipeline of new brands and products to hit shelves.
After shareholder approval in mid-2021, Wellnex Life rebranded from Wattle Health Australia (ASX:WHA) and relisted on the ASX. Since relisting, the company has formed major joint ventures and partnerships and launched an array of brands across health and wellness categories.
The company last month announced a major supply agreement with global health powerhouse GlaxoSmithKline (GSK) to supply its innovative paracetamol soft gel liquid analgesic product to GSK for distribution in Australia and New Zealand.
Wellnex has secured distribution rights for Performance Inspired sports supplement brand, owned by actor Mark Wahlberg and ex-GNC veteran Tom Dowd, which is due to launch in Q1 FY23 through Chemist Warehouse stores nationally. The deal was secured by the company’s board advisor, Julius Cohen of Reach Markets, who was involved in securing the actor’s investment in F45 in 2019.
Performance Inspired has grown its brand primarily in the US and initial projections indicate it will be well received in the Australian market.
In a joint venture with Australian Dairy Nutritionals, Wellnex will be launching Australia’s first locally made organic A2 formula under the brand name Ocean Road Dairies, which is forecast to be available in Chemist warehouse stores nationally from July 2022.
And in an exclusive partnership with CH2, Wellnex will also be launching its new brand Pharmacy Own in the second half of calendar year 2022, with initial plans to bring 20 products to market.
CH2 is one of Australia’s largest integrated medical suppliers, servicing more than 2000 pharmacies across the country.
Wellnex CEO George Karafotias said Q3 had been another strong quarter for the company.
“We are seeing continued growth across the whole business and importantly in our wholly owned brands where margins are highest,” Karafotias said.
“What is exciting is that while we continue to see organic growth, the strong pipeline of brands and products will accelerate our revenue and margins.
“These results are a reflection of our unique business model and the team at Wellnex.”
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.
Health & Biotech
Health & Biotech
Health & Biotech
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