Record sales revenue of $2.81 million for the months of July and August has set Wellnex Life (ASX: WNX) on track to surpass its 2021 full-year result of $18.3 million.
The health and wellness company said strong sales growth from existing and new product lines resulted in a 49% jump on revenue on the previous corresponding period and could help it exceed financial year 2022’s budgeted revenue of $21 million.
Revenue growth will be further boosted with the launch of the Wagner Liquigesic brand next month driven by initial purchase orders of around $1 million, and the launch of Wakey Wakey and The Iron Company nutritional brands in pharmacies and grocery stores including Chemist Warehouse, Terry White and Coles.
Plans are also being finalised to roll out the Performance Inspired nutrition and supplement brand developed by US celebrity Mark Wahlberg.
Last month, Wellnex secured an exclusive licencing agreement to market the brand throughout Australia and New Zealand, and retains the first right to expand into Asia.
Brand Solutions Australia
The record revenue follows the $2.75 million acquisition earlier this year of brand development, brokerage and distribution business Brand Solutions Australia, which transformed Wellnex from a capital-intensive, vertically-integrated infant formula manufacturer to a capital-light health and wellness company.
Brand Solutions is an established distributor to Australia’s biggest health and wellness stockists including Coles (ASX: COL) and Woolworths (ASX: WOW), Chemist Warehouse, Priceline and pharmacy wholesalers Sigma Pharmaceuticals, Symbion and Australian Pharmaceutical Industries.
Wellnex chief executive officer George Karafotias said he was pleased with the company’s financial achievements since re-listing with the ASX in July.
“We are delighted that our strategy, business model and brand portfolio are producing solid growth in revenue for the business, despite prolonged COVID-19 lockdowns in our major markets of New South Wales and Victoria,” he said.
“Our results make us very confident of growing our revenue further as [these states] begin to open their economies, which will coincide with the launch of a line of new brands beginning to arrive on Australian shelves.”