Wellnex Life Limited ASX: WNX Share Price: 2.7c SOI: 1,118,690,888 Market Cap: ~$32m Cash on hand: $591k (as per last quarterly, does not include inventory)
Whilst the total sales for the FY24' period has dropped from FY23' due to the delayed transaction with the acquisition of PainAway, gross margin %'s jumping from 17% in FY23' to 33.4% in FY24' show the immediacy of the impact that this transaction is having on the companies bottom line.
Key Points - Gross profit projections for FY24' and beyond have gross margin %'s hovering at and above ~29% - Sales tipped to grow to over $49m for the FY25' period, and then $78m for the FY26' - Despite the delays in both the PainAway transaction + the regulatory bottleneck of ticking off its 8 OTC applications, the company achieved an operational profit for the February period, demonstrating the strength of the business and the benefit of having multiple revenue streams
Whilst these delays coupled with disgruntled existing holders have resulted in a depressed share price, it has created an attractive base level for new investors to invest at, with the company currently capped @ only ~$32m
- Achieved trading profit in February - Record $2m+ in orders for Wellnex products in April - Pearl Funds Management commiting $3m @ 2.8c, a 33% premium to today's share price of 2.1c - PainAway has delivered significantly increased revenue + margins, aligned with its pre acquisition targets - Attractive level to invest @ given the current lowly market cap after being beaten down post re-listing/acquisition - LSE listing plans
Wellnex Life Limited is a pioneering Australian enterprise dedicated to serving the consumer health and wellness sector through its brand and distribution services
Highlighted by its headline products through its PainAway acquisition (acquired last year), PainAway is an established brand since 1999 and has grown to become the #2 provider of topical pain relief products in Australia
PainAway generated $12.4m revenue FY22'
Sales Channels Key Pharmacy Wholesalers & Retailers include - Chemist Warehouse - Priceline Pharmacy - Sigma - Simbion - Amcal - Terry White
Key Supermarkets & Customers - Woolworths - Coles - Aldi
With plans to list on the London Stock Exchange recently outlined in an announcement on April 23rd ("Wellnex to dual list on the London Stock Exchange"), a listing on the LSE will offer a foundation for expanding the companies reach both at home and abroad, let alone the various partnerships and synergies that may evolve organically from such listing. This milestone coincides with Wellnex's imminent venture into new international markets with its diverse range of brands and products
