- Wellnex has strengthened its leadership by appointing Chemist Warehouse director Mr. Mario Tascone as Chair, joining Mr. Andrew Vidler and Mr. Jeffrey Yeh. This addition of experienced leadership aims to enhance corporate governance and navigate the consumer health industry effectively
- Wellnex has expanded its partnership with Haleon, enabling the introduction of a much wider range of TGA-approved products in new markets. The recent UK approval of Wellnex’s analgesic under Haleon’s Panadol brand sets the stage for sales to begin in FY25
- Wellnex has secured an exclusive distribution agreement with Homart Pharmaceuticals, facilitating entry into strong Asian markets like China and Taiwan through Homart's extensive network. This strategic partnership is expected to substantially increase Wellnex's sales in these regions. Additionally, partnerships with Haleon and Homart open opportunities for Wellnex to expand its portfolio, potentially acquiring brands like Pain Away and other owned products
- Wellnex has recently experienced significant successes, including
achieving a trading profit in February, record-breaking sales exceeding $2 million for Wellnex owned brands in April, and an operating profit of approximately $350,000 in the same month. Additionally, they have expanded their product line with new 'Wakey Wakey' offerings released last month
- Launch of its medicinal cannabis product line 'Wellness Life' on July 1st through Chemist Warehouse stores, who themselves retain 10% equity in the JV
- High margins have been outlined in the previously released trading updates, with gross margins growing over 26% for the Jan - May period of 2024 compared to the same period last year
- Gross profit increased from $2M to $3.3M compared to the same period last year
- $2.2M net sales for May with a gross margin of 40%
Whats to follow:- London Stock Exchange listing, expanding the companies footprint overseas
- Sales tipped to grow to over $49m for the FY25' period, and then $78m for the FY26' (recent desk note)
- Gross profit projections for FY24' and beyond have gross margin %'s hovering at and above ~29% (recent desk note)
- June numbers to be reported
- Launch of Wellness Life through Chemist Warehouse and other distribution outlets, which will add to the companies bottom line significantly
I still maintain a market cap of $80M - $100M in the short to medium term is not out of the question if the company continues to nail its goals that it has outlined to the market like it has been in recent times. The gross margins it has reported to the market are incredibly high, particularly with PainAway, outlining the success of that company making acquisition.
Onwards & upwards
(20min delay)