WELLNEX LIFE LIMITED For personal use only
ASX Announcement | 29 July 2022 |
Wellnex Life Quarterly Activities Statement -
June 2022 Quarter
Wellnex Highlights for June 2022 Quarter
- Customer receipts:
- $4.7 million;
- 31% increase on prior quarter; and
- $4.6 million in additional purchase orders for the liquid paracetamol product received to 21 July 2022 (show up in September receipts).
- Net cash position from operations:
- $3.48 million negative cash position driven by:
- Significant investment in inventory to mitigate potential supply chain issues; and
- Launch costs associated with Mark Wahlberg's Performance Inspired sport supplement brand launch.
- TGA Approval Process initiated to obtain a Schedule 3 (S3) registration to sell medicinal cannabis products without a prescription through the pharmacy channel by the end of 2023.
- Wellnex-ownedbrands including Wakey Wakey and The Iron Company spearheading improved margins and strong, sustained sales growth.
- Large pipeline of product and brand launches to continue to drive revenue and margins higher.
- Wellnex Capital raise completed via placement of a $6.2 million convertible note @ $0.21 conversion price per share, with a coupon rate of 9% per annum.
Wellnex Life Limited (ASX: WNX) is pleased to release its quarterly cashflow report for the period ended 30 June 2022. Throughout the quarter there has been significant revenue growth across the business with strong uptake in the company's wholly owned brands.
Cash receipts for the June 2022 quarter were $4.7 million, up 31% compared with the previous quarter. There was also an additional $4.6 million received in purchase orders for the liquid paracetamol product with receipts to be received in the September 2022 quarter. The Company has seen strong sales through the month of July, and the pipeline of brands and products to be launched in the coming months is anticipated to drive continued growth in sales.
Wellnex Life Limited
ABN 77 150 759 363
Building 2, Level 3, Suite 69, 574 Plummer St, Port Melbourne, Vic 3207.
info@wellnexlife.com.auPhone: +61 3 8399 9419
For personal use only
Net operating cash loss for the period was $3.48 million, driven primarily by the investment in inventory to mitigate supply chain issues, and in preparation of Mark Wahlberg's Performance Inspired brand, which will commence ranging in Chemist Warehouse nationally in October 2022. Supply chain issues continue to be experienced globally, with delivery times and costs increasing substantially in the last 12 months. Wellnex continues to take proactive step by increasing its inventory holdings to minimise both disruption and costs. Despite these challenges, the Company has managed to maintain and increase margins by increasing orders to obtain lower costs per unit and reducing the quantity of shipments.
Brand and Product Growth
Throughout the June quarter, Wellnex made significant progress in growing Wellnex-owned brands, with Wakey Wakey and The Iron Company now available across all major pharmaceutical and grocery retailers.
Wakey Wakey | The Iron Company |
This will be complemented by a string of additional brands and launches, including:
- Australia's first produced Organic A2 infant formula brand, Ocean Road Dairies, to be launched in September 2022 in Chemist Warehouse nationally;
- Mark Wahlberg's Performance Inspired sport supplement brand to be launched in October 2022 in Chemist Warehouse nationally;
- Launch of a e-commerce platform with a new online brand in October 2022; and
- Pharmacy Own launch in December 2022 via an exclusive national distribution agreement with CH2 which has reach into over 2,000 pharmacies.
It is expected that the strong pipeline and growth of purchase orders of the Company's innovative products will continue to drive revenue growth (FY23 revenue budgeted at $29 million) and substantially increase margins.
Wellnex Life Limited
ABN 77 150 759 363
Building 2, Level 3, Suite 69, 574 Plummer St, Port Melbourne, Vic 3207.
info@wellnexlife.com.au Phone: +61 3 8399 9419
For personal use only
Medicinal Cannabis Business
Wellnex entered into a 50/50 Joint Venture with OneLife Botanicals (announced through the ASX on 18 July 2022). This Joint Venture will enable Wellnex to be fast to market with cannabis-based products, under Schedule 3 (S3) registration protocols. With certainty of supply and the ability to manufacture bespoke products, Wellnex will be one of the few companies that will have full traceability of the whole production and manufacturing process of cannabis products, using Australian product and experience in house knowledge.
By the end of 2022, Wellnex is also aiming to bring products to market to be sold under the Special Access Scheme (SAS), which is currently a $600 million market and growing strongly.
Capital Raise Successful
As announced on 2nd June 2022, Wellnex Life successfully completed a capital raise of $6.2 million via the issue of convertible notes on favourable terms and conditions. The terms of the note were superior to the previous issue, with funds raised under this offer used to redeem the previous convertible notes of $2.4 million.
The current convertible notes have a conversion price of $0.21 (110% premium on share price at time of issue, with a coupon rate of 9% per annum and a term of 24 months).
The capital raise strengthened the Company's balance sheet and enables Wellnex to execute on its business objective to bring new and innovative brands and products to the growing health and wellness market.
Payment made to related parties as outlined under Section 6.1 of the Appendix 4C relate to the director fees and salaries paid during the quarter.
This announcement has been authorised for release on the ASX by the company's board of directors.
To stay up to date with Wellnex Life news and announcements, please register your details on the Wellnex Life investor portal.
ENDS | |
Further information: | |
Company: | Investor Relations: |
George Karafotias | Sophie Bradley |
Chief Executive Officer | IR Executive |
Email:george.k@wellnexlife.com.au | Email:sophie.bradley@reachmarkets.com.au |
Phone: 03 8399 9419 | Phone: 0450 423 331 |
Wellnex Life Limited
ABN 77 150 759 363
Building 2, Level 3, Suite 69, 574 Plummer St, Port Melbourne, Vic 3207.
info@wellnexlife.com.au Phone: +61 3 8399 9419
For personal use only
About Wellnex Life
Wellnex Life (ASX: WNX) is an Australian brand and distribution company of customer-focused health and wellness products. The company's large portfolio, first-to-market strategy and established retail distribution network provide an attractive business model for growth and profitability. Wellnex's mission is to deliver health, wellness and vitality solutions to consumers in Australia and worldwide.
Wellnex Life Limited
ABN 77 150 759 363
Building 2, Level 3, Suite 69, 574 Plummer St, Port Melbourne, Vic 3207.
info@wellnexlife.com.au Phone: +61 3 8399 9419
For personal use only
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
WELLNEX LIFE LIMITED | |
ABN | Quarter ended ("current quarter") |
77 150 759 363 | 30 June 2022 |
Consolidated statement of cash flows | Current quarter | Year to date | ||
$A'000 | (12 months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 4,704 | 17,880 | |
1.2 | Payments for | |||
(a) | research and development | (79) | (155) | |
(b) product manufacturing and operating | (5,530) | (15,687) | ||
costs | ||||
(c) | advertising and marketing | (819) | (3,274) | |
(d) | leased assets | - | - | |
(e) | staff costs | (941) | (2,433) | |
(f) administration and corporate costs | (697) | (3,787) | ||
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | - | 3 | |
1.5 | Interest and other costs of finance paid | (112) | (221) | |
1.6 | Income taxes paid | - | - | |
1.7 | Government grants and tax incentives | - | - | |
1.8 | Other (GST refund/(paid)) | (1) | 59 | |
1.9 | Other (costs for CBDG administration) | - | - | |
1.9 | Net cash from / (used in) operating | (3,475) | (7,615) | |
activities | ||||
2. | Cash flows from investing activities | |||
2.1 | Payments to acquire or for: | |||
(a) | entities | - | - | |
(b) | businesses | (61) | (3,743) | |
(c) property, plant and equipment | - | - | ||
(d) | investments | - | (3) | |
(e) | intellectual property | (42) | (42) |
ASX Listing Rules Appendix 4C (17/07/20) | Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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Wellnex Life Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 23:13:07 UTC.
