Wellnex flags 1H FY23 revenue growth of 54% compared to last year

Mon 09 Jan 23, 10:49am (AEST)
A customer retrieves a prescription from a mock-up pharmaceutical store for the purposes of an illustrative photograph
Source: iStock

Key Points

  • Wellnex will launch its new Pharmacy Own brand in up to 2,500 bricks and mortar stores across Australia this month
  • Company has continued strong revenue growth over FY22 levels in the FY23 so far
  • Company looking at medicinal cannabis market in particular and most recently acquired a teeth whitening brand

Healthcare smallcap Wellnex Life (ASX:WNX) has continued reporting a strong FY23 after a subdued FY22.

In an update released on Monday, Wellnex’s half-year unaudited revenue results for the company at $13.2m, up from $8.6m in 1H of FY22. 

Those numbers put through the cruncher reveal an increase of 54%. 

The company pointed to strong growth coming primarily from contract manufacturing orders and revenues associated with its wholly owned brands.

More opportunities ahead

In a trading update released in November 2022, the company’s strong performance over FY22 was logged early. 

The results of that update saw revenue up 60% in the first four months of FY23. Now, management is bullish on more to come in the next six months. 

“Our business model of bringing innovative brands and products first or fast to market in the growing health and wellness market is producing results and gives us great confidence moving forward,” Wellnex chief George Karafotias said. 

“The second half of FY23 will bring more opportunities to continue to grow our revenue and margins with some exciting brand and product launches, including the launch of medicinal cannabis products for the SAS market in Australia that is growing exponentially.”

Most recently, the company acquired Mr. Bright, a teeth whitening brand. Wellnex expects to see $800,000 in revenue each year from this product line alone. 

Launch of new sales pipeline 

Wellnex will kick off the year strong, with a new brand launch commencing later this month. 

Among Wellnex’s wholly owned brands is one called Pharmacy Own which Wellnex expects to see hit the shelves in up to 2,500 pharmacies across Australia.

Working alongside a company called Clifford Hallam Healthcare (or “CH2”), Wellnex and CH2 will both develop Over The Counter (OTC) wellness products with both players bound to release up to 20 core products between January 2023 and 2024. 

The company also recently entered the e-commerce space for the first time. 

Brief glimpse

Wellnex has a market cap of $25.6m at the time of writing. 

Shares were up 3.3% to 6.2c in the first hour of Monday trade (January 9). 

Shareholder returns on a one year basis are down -43.64% for Wellnex investors, but year to date performance is up 8.7%. 

Whether or not Wellnex can sustain momentum throughout an uncertain year remains to be seen.

The state of Wellnex's three month charts
The state of Wellnex's three month charts


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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