Ann: Trading Update - June, page-2

WNX - Trading Update

- Revenue $11.1M for Jan - June (6 month period)
- $2.95M revenue in June alone, with each consecutive months revenue higher than the previous months
- Revenue expected to continue to grow into the next Financial Year as more products are introduced to market, including more Wakey Wakey products & Wellness Life, the companies own medicinal cannabis products
- Gross margins continuing to grow, having gone from ~18% (same period as last year) to ~40% this period
- Gross profits for the 6 month period up 62% to $4.4M, up from $2.7M
- 2 new additional Wakey Wakey products to be launched this month (July), further adding to the companies high gross margins for the next quarter + year
- Whilst I.P licensing revenue was down from the previous corresponding period, gross margins increased 22%, increasing the gross profits achieved by 50%. Revenue is expected to increase 1H FY25' as both approvals & delays have been sorted.
- The company has shifted away from its brokerage side to focus on its high margin products/business activities, with gross margins of around ~12% not in line with the 40% achieved elsewhere

As has become the norm for the first 5 months of this calendar year for WNX, the company has once again reported impressive numbers for both the previous month (June) & the half year itself

I also found some key wording relating to its Wellness Life medicinal cannabis product. 'Wellness Life expects to continue to grow both its revenue & profit from this division with new products and territory expansion to continue throughout FY25'

Territory expansion would be MASSIVE for its medicinal cannabis products, with the Australian medicinal cannabis market alone currently worth over ~500M AUD/Year