Wellnex is a health and wellness darling as financials strengthen
Health & Biotech
Health & Biotech
Wellnex has demonstrated the strength of its health and wellness offerings with cash receipts for the December 2022 quarter increasing 61% to $7.6m.
The increase over the previous corresponding period (PCP) outstrips the September 2022 quarter, when the company marked a 7.8% increase in cash receipts over the PCP to $5.23m.
Wellnex Life (ASX:WNX) also posted a 54% increase in revenue for the half year to a record $13.2m due to growth in its owned brands and contract manufacturing.
And there’s more to come.
Further growth is expected in the coming quarters with further brand launches and increasing contract manufacturing orders.
These include the acquisition of premium tooth whitening brand Mr. Bright, which is expected to drive revenue and margins as well as the launch of Pharmacy Own in the next quarter under an exclusive distribution agreement with CH2.
Additionally, there is a very real likelihood that the company could be on the cusp of delivering positive cash flow given that its net cash loss in the second quarter was down 93% to just $186,000.
The second quarter of the 2023 financial year was one with much potential to deliver strong growth to the company in the coming quarters (and years).
These include the launch of its TheSet.Co business-to-consumer sales channel, which enables entry to the $1.5 billion online health and wellness market for self-care products, with an initial 19 products.
Wellnex has plans to further increase the product offerings on TheSet.Co with new products to be launched in coming quarters to meet consumer demand.
It also acquired Mr. Bright, a premium teeth whitening brand that has seen year-on-year revenue growth and has strong brand awareness and margins.
Sales of Mr. Bright will be reflected in the coming quarters.
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.