Wellnex Life upgrades full-year revenue guidance after sales rip higher in July and August
Health & Biotech
Health & Biotech
Link copied to
It’s been a stellar start to the new FY for Wellnex Life, with a big jump in revenue and a new paracetamol product set to be rolled out through Chemist Warehouse, amongst other deals.
Wellnex Life (ASX:WNX) has been building a strong track record of execution since announcing its strategic acquisition of leading health products company Brand Solutions Australia (BSA).
And this morning the company confirmed that its recent operating momentum has continued into FY22, as sales ripped higher in July and August.
WNX recognised revenue of $2.81m through the first two months of the new financial year, a gain of 49% from the prior corresponding period.
Wellnex CEO George Karafotias said the company is “delighted to be able to report back to shareholders so quickly after the acquisition of Brand Solutions Australia, that our strategy, business model and brand portfolio are producing solid growth in revenue for the business”.
In addition, the revenue figure doesn’t include a pipeline of material purchase orders that WNX has already received, including a ~$1m order for its innovative Wagner Liquigesic product – the first soft gel liquid paracetamol to be released in Australia.
The Wagner Liquigesic brand is scheduled for launch next month, and the product will be distributed nationally through WNX’s partnership with national pharmacy chain Chemist Warehouse.
Top-line revenue growth will be “further enhanced with the launch of Wakey Wakey and The Iron Company Brand in major pharmaceutical and grocery retailers including Coles, Chemist Warehouse and Terry White”, the company said.
And the company is also preparing the rollout strategy in connection with its exclusive distribution partnership with Performance Inspired, the leading US health supplements company co-founded by high-profile actor and entrepreneur Mark Wahlberg.
Taken in aggregate, the company’s success in executing its multi-channel distribution strategy has already resulted in a material re-rating of its full-year revenue guidance.
Wellnex now expects budgeted FY22 revenues to exceed $21m, up from the FY21 result of $18.3m.
Commenting on the recent momentum, Wellnex CEO George Karafotias added that the company’s fast start to FY22 was also achieved in the midst of extended COVID-19 lockdowns in Australia’s major east coast markets.
And with policymakers in Sydney now flagging a broader reopening in October, trading conditions will start returning to normal right when WNX’s exciting new product range is scheduled to hit shelves.
“The result demonstrates the resilience of Wellnex’s business model, making us very confident of growing our revenue further as NSW and Victoria begin to open their economies later this year,” Karafotias said.
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.