We are pleased to share Wellnex Life (ASX: WNX), owner and developer of some of Australia's leading health brands, has recently released a key ASX announcement.
Wellnex Life Limited (ASX: WNX) (“Wellnex” or “the Company”) is pleased to release their Appendix 4E for Financial Year 2024 (FY24)and to provide the following operational update.
Announcement Highlights
- Revenue for FY24 of $16.9 million with revenue in the second half of FY24 up 100% over the first half of FY24
- Margins for FY24 up 76% compared to FY23 from 17% to 30%, with margins in the second half of FY24 increasing to 40%
- Margin in dollar terms increasing by 6.5% to $5 million from $4.7 million in FY23 despite revenue decreasing in FY24 by 39.3% compared to FY23, due to the exit of all brokerage arrangements at the end of FY23
- Normalised EBITDA loss for FY24 down 26.5% compared to FY23 of $5 million, with 90% of the total loss incurring in the first half of FY24.
- Net Assets of Wellnex Life as at 30 June 2024 was $7.1 million compared to $0.6 million as of 30 June 2023
- Strong platform of growth for FY25 to drive increased revenue and strong margins between 36% and 40% and profitability
The FY24 period was one of two halves, where the first half of FY24 performance was severely impacted by the delay in finalising the transformational acquisition of Pain Away, with the second half of FY24 performance validating the company’s pursuit in acquiring Pain Away.
FY24 has provided Wellnex Life with the platform to grow its revenue, maintain strong margins of between 36% and 40% and become a profitable business.
Revenue for FY24 was $16.9 million which was a decrease of 39.3% from FY23 (FY23: $27.8 million), with the reduction in revenue being a deliberate strategy by the company with the exiting of all low margin brokerage arrangements at the end of FY23 of circa $13 million.
Revenue in the second half of FY24 increased by over 100% compared to the first half of FY24 to $11.3 million (1HFY24: $5.6 million).
Wellnex Life decision to exit all brokerage arrangements has been validated by the increase in margins in both dollar and percentage terms. Margins as a percentage increased by 76% in FY24 compared to FY23 to 30% (FY23: 17%), with the second half of FY24 margins at 40%.
Wellnex Life also saw a rise in margins in dollar terms despite a 39.3% decline in revenue, with margin contribution in FY24 up 6.5% to $5 million (FY23: $4.7 million), with the 2H of FY24 contributing 90% of this margin contribution.
Wellnex Life's CEO George Karafotias commented:
" Financial Year 2024 was a year of two halves where the first half was impacted by the delays and costs associated with the acquisition of Pain Away, but on any metric the pursuit and finalisation of Pain Away has been justified. The second half of FY24 has resulted in an increase in revenue and margins and has set up the company to become profitable, in FY25, with our unique and innovative brands continuing to gain traction. , The continued expansion of our IP licensing arrangement and the expansion of our JV brands including the new medicinal cannabis brand – Wellness Life will all contribute to a strong year ahead."
Congratulations to George Karafotias, Zack Bozinovski, the board and the team at Wellnex Life for reaching this significant milestone.
Read the full Wellnex Life ASX announcement here.
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