FY19 is a transformative year for Star Combo. The company is...

FY19 is a transformative year for Star Combo. The company is forecasting to be EBITDA profitable for the full year despite ~$1.5m of additional cost base to support future growth in FY20 and beyond.
Continuing to diversify towards higher margin own brand and online platform sales.

1H19 Pro-Forma Revenue $20.3m:

Online Platform 56.1%
Contract Manufacturing 16.6%
Retail Sales 15%
Own Brand Sales 12.3%

• 5 key brands with over 150 products
• 3 established distribution channels with a focus on Chinese consumer demand for “Australian Made” products
• Online – Austoyou.com.au (wholly owned), JDMall, Alibaba
• China – in-country office, agents and access to over 3,000 pharmacies
• Domestic – Terry White 450 pharmacy outlets.

No debt – 1H19 closing net cash of A$7.8m.

In 2018 the market in China, for vitamins and health supplements, was estimated to be in excess of US$5.2 billion and growing. Chinese consumers view Australian produced products as being of high quality and subject to rigorous regulation and quality control. Hence, the addition of the Austoyou e-commerce platform, which will deliver Australian made supplements direct to the consumer in China, is viewed by the Company as a transformational acquisition that will accelerate growth plans with a significant near term increase in revenue.

Future acquisitions – looking at further acquisitions of profitable brands in the next year that have:
• Ability to put through Star Combo existing distribution network to increase sales
• Ability to manufacture at Star Combo facility to improve margins.

SOI = 86.5 Million ( Top 5 hold over 85%)