Wellnex Life (ASX: WNX) has revealed a 6.6% increase in unaudited revenue for the financial year ending June (FY2022) to $19.5 million, with accelerated growth expected in FY2023.
The company also confirmed around $3 million in purchase orders would be recognised as revenue in FY2023.
Including these purchase orders, Wellnex expects FY2023 revenue to rise 49% on FY2022 levels.
Wellnex chief executive officer George Karafotias said the company had made “strong progress” throughout FY2022, despite global supply chain issues delaying product delivery and subsequent sales and revenue.
“We have successfully launched several new products, signed a supply agreement with pharmaceutical giant GlaxoSmithKline and have key distributions agreements in place with all major pharmacy and grocery retail channels.”
Mr Karafotias said that in addition to the 49% revenue growth targeted for FY2023, it also aimed to boost margins for its in-house brands.
“We look forward to continuing to expand our pipeline of new product offerings into FY2023 and beyond – to serve the growing health and wellness market.”
Underpinning the expected revenue growth will be Wellnex’s distribution of Australia’s first organic A2 infant formula range Ocean Road Dairies. This formula range will be available through Chemist Warehouse pharmacies in the September quarter.
Also, during the period, Wellnex plans to launch Mark Wahlberg’s Performance Inspired brand through the Chemist Warehouse network.
Other upcoming product launched include Pharmacy Own and Wellnex’s new e-commerce brand and platform. These will both be available during Q2 FY2023.
Pharmacy Own will be sold exclusively through one of Australia’s largest medical device and pharmaceutical suppliers CH2.
The e-commerce platform will enable the sale of products directly to consumers for the first time.
Well-positioned to fund growth
At the start of June, Wellnex raised $6.2 million to fund its entry into the high-growth, high-margin S3 designated over-the-counter medicinal cannabis market.
The funds will also help with financing the e-commerce platform launch.
“We have made significant progress in the last 10 months, with the launch of multiple new brands and a supply agreement with GlaxoSmithkline … with the funds raised we look forward to progressing our aim of becoming a major participant in [medicinal cannabis] market,” Mr Karafotias said.