BWX : Consolidated Half Yearly Report and Accounts

For personal use only

ASX Announcement

28 February 2022

BWX LIMITED - CONSOLIDATED APPENDIX 4D

Melbourne, Australia - BWX Limited (ASX:BWX or "the Group") lodged Appendix 4D on the ASX platform on 25 February 2022 and subsequently provided an update to clarify an error in the Appendix 4D concerning Note 11: Business Combination.

BWX has now lodged a consolidated Appendix 4D with the correct figure stated in Note 11: Business Combination so that a complete Appendix 4D is available. There are no other changes to the Appendix 4D.

-ENDS-

Authorised for release by the Board Directors of BWX Limited

For personal use only

BWX Limited

ABN 13 163 488 631

Interim Financial Report

For the half-year ended 31 December 2021

Contents

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For personal use only

The Directors present their report together with the consolidated financial statements of BWX Limited ("the Company") and its subsidiaries (collectively, the "Group") for the half-year ended 31 December 2021.

Directors

The Directors of the Company during the half-year and up to the date of this report:

Mr Ian Campbell

Mr Denis Shelley

Mr David Fenlon

Ms Fiona Bennett

Mr Rodney Walker

The above-named Directors, except where specifically indicated, held office during the whole of the half-year and since the end of the half-year to the date of this report.

Principal activities

BWX is a vertically integrated developer, manufacturer, distributor and marketer of branded skin and hair care products in the natural segment of the beauty and personal care market. The Group owns, manufactures and distributes under the Sukin, Mineral Fusion, Andalou Naturals, DermaSukin, Life Basics and USPA personal care brands, and sells products under these brands, as well as health, beauty and wellbeing products sourced from third-parties, via the Nourished Life e-commerce site. Effective on 1 July 2021, BWX acquired the Flora & Fauna e-commerce business, which also sells health, beauty and wellbeing products sourced from third-parties. BWX, effective on 30 September 2021, acquired a 50.1% controlling interest in Go-To Skincare which manufactures and distributes premium skin care products within the masstige market segment.

Review of operations

The (loss)/profit of the Group for the half-year after providing for income tax amounted to ($1.678) million (2020: $9.662 million).

The profit of the Group before depreciation and amortisation, finance costs, acquisition-related benefits/expenses and income tax expense for the half-year amounted to $10.755 million (2020: $11.324 million).

The Group's basic (loss)/earnings per share is (1.5) cents. Its diluted (loss)/earnings per share is (1.5) cents.

The net assets of the Group are $388.328 million as at 31 December 2021 (30 June 2021: $358.843 million).

Brand Health and Distribution

The Group operates within three reportable segments, being: USA (including Canada), (Australia/International); and a newly formed operating segment (BWX Digital) following the 100% acquisition of Flora & Fauna which completed July 2021 and together with Nourished Life formed a new direct-to-consumer (D2C) business unit with the BWX Group.

USA reported revenues of $42.4m in 1H FY22, compared to $37.8m in 1H FY21. The Americas remains on track to achieve +62% more points of distribution projected by the end of FY22.

Australia/International reported revenues of $41.3m in 1H FY22, compared to $33.2m in 1H FY21. Australia/International remains on track to achieve the following projected distribution targets by the end of FY22: +14% in Asia; +54% in UK & EMEA; and +12% in Australia.

BWX Digital reported revenues of $19.6m in 1H FY22, compared to $13.4m in 1H FY21.

Across all brands, markets and channels, the structural shift to online shopping continues. BWX remains focused on direct- to-consumer investment and partnerships with the share of D2C revenues increasing to 41% of total revenue in 1H FY22 which is ahead of the target for 38% by FY23.

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