Wellnex Life gets set for launch as it rejoins the ASX boards with strong revenue growth
Health & Biotech
Health & Biotech
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Following its successful BSA acquisition, the company is set for rapid revenue expansion in FY22.
Health and Wellness company Wellnex Life (ASX: WNX) is set for its next phase of growth after successfully relisting on the ASX this morning.
The relisting is the result of a busy transformation period for the business, during which it carried out strategic M&A and rebranded from its previous company name (Wattle Health).
Central to WNX’s turnaround strategy was its acquisition of Brand Solutions Australia (BSA), which specialises in developing products and brands in the multi-billion-dollar health & wellness sector.
It followed an extensive due diligence period after WNX freed up funds for the deal via a separate asset sale.
And the company has already found early success, as it rejoins the ASX having just booked $4.65 million of revenue in the June quarter.
In addition, purchase orders for the September quarter are indicative of q/q sales in excess of $5.1m as the business builds strong traction in its core markets.
Wellnex develops and markets products for Australia’s $5.6bn health & wellness industry, and it maintains key distribution partnerships with major pharmacy groups including Chemist Warehouse.
Through that distribution footprint, the company helped drive material FY21 sales growth for WNX brands such as Uganic infant formula (up 48%) and Little Innoscents baby skincare (up 46%).
Other brands in the WNX product suite include Wagner Liquigesic (softgel ibuprofen and paracetomol) and Simply 7 lentil chips.
In addition, the company executed on a streamlined business model which saw FY21 operating expenses fall by 67%.
With major new distribution channels and a strong product development pipeline, the company is now poised to drive annualised revenue growth of more than $20m in FY22 which will flow through to higher core earnings.
In that context, Wellnex Life CEO George Karafotias said the executive team is excited for the year ahead, following the relisting and strong participation from shareholders in the company’s recent entitlement offer.
“Management would like to thank shareholders for their overwhelming support for the acquisition of Brand Solutions Australia (BSA), and for the vision that we have for Wellnex Life in becoming a leading provider of innovative health and wellness products to Australian and international consumers,” Karafotias said.
“This level of support reinforces our new direction and positions us well to capitalise on the significant growth potential.”
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.