Ann: Trading Update - June, page-3

Share price currently trading @ 2.7c after yesterdays news, not only outlining the impressive revenue and margins, but also the consistent sales growth and strengthening of its market position both domestically and globally in the future

- Net sales of $2.95M in June, after 5 consecutive months of growth in revenue, indicates revenue for the 1H FY25' would be at least $18M+ if revenue were to remain the same OR continue to grow. This does not take into account:
A) The launch of further Wakey Wakey products
B) The launch of its Medicinal Cannabis brand Wellness Life
C) IP licensing to return to normal proceedings considering the interrupted 2H FY24' it was faced with (approvals + delays)
D) Any other opportunities or product launches along the way, coupled with territory expansion and organic growth over the rest of its products

- Wellnex's partnership with Haleon ($37B USD market cap) continues to develop, with both companies currently finalising further global market launches for 2025
- Wellness Life to be available not only through the extensive Chemist Warehouse network with over 500 stores across Australia wide (who also retain a 10% stake in the JV) but also distributed through other pharmaceutical wholesalers and retailers
- Wellnex owned brands products made up 82% of total revenue for the 2H FY24' period, compared to 21% for the same period last year (the majority attributed to the PainAway acquisition).
- Revenue for Wellnex owned brands was $8.9M compared to $3.1M for the same period last year, thus leading to much higher margins for the companies own products
- Wellnex identified there was no liquid paracetamol product on the market and produced one in soft gel cap form, which was approved by the TGA. Haleon approached Wellnex (not vice versa) and after extensive DD by both parties, Wellnex entered into a supply agreement with Haleon to supply that product under the Panadol brand. The product has done so well (over 50% of budgeted forecasts) that it will now be launched in both the U.K and the UAE. Further products along the line from Wellnex can be expected to be released under the Panadol brand in the future