Ann: Annual Report to shareholders, page-5

• Organic growth in key markets: Holista’s largest divisions are leveraged to fast growing
markets due to growing demand for health products. For instance, the global health food
ingredients market is forecasted to grow at a compound annual growth rate (CAGR) of 7.8%
from 2022 to 2027 to reach US$146.3 billion1
, while the global vitamins and supplements market
is forecast to grow at a CAGR of 6.1% from 2021 to 2028 to hit US$196.6 billion2
.
• Potential peak in inflation: Cost pressures are starting to ease from 2022. If this trend
continues, as many economists are forecasting, it will be a positive development for Holista’s
margins and will better position the Group to deliver further operating cash flow increases in the
current financial year.
• Rebound in Dietary Supplement Division: As outlined above, there has been a marked
improvement in sales of Holista’s market-leading supplements in Malaysia following the soft
December quarter.
-------------------
The rebound in January 2023 has persisted and management is anticipating
a stronger result for this division (which is the largest cash contributor of the Group) in the current
quarter, if not beyond.
-----------------------
• Reopening of the Chinese economy: The return to business-as-usual in China should open
new growth avenues for Holista, as outlined above. While the success of these endeavours by
Holista’s partners are not essential to drive further growth for the Group, these opportunities
could add significant scale to Holista over the medium to longer-term and does not require any
significant investment on Holista’s part to pursue.