Wellnex Life Releases Half Year Report

• Revenue up 111.4% to $11.96 million
• Gross profit up 319% to $2.72 million
• EBITDA loss reduced by 62.7% to $1.9 million

Wellnex Life Limited (ASX: WNX) has released its half-year report for the first half of FY25, showcasing significant growth across key financial metrics. The company recorded a 111.4% increase in revenue to $11.96 million, compared to $5.65 million in the prior corresponding period (PCP). This growth was driven by a 186% increase in brand revenue to $8.49 million and a 64% increase in IP licensing revenue to $3.47 million. Gross profit for the period surged 319% to $2.72 million, despite a 70% increase in trade spend to $3.25 million (27.2% of revenue). Margin from sales, minus trade spend, increased 283% to $5.96 million. The company's net loss improved by 22.8% to $7.52 million, which was impacted by one-off non-cash and non-operational expenses of $5.12 million. Wellnex Life's normalised EBITDA loss was reduced by 62.7% to $1.9 million. The company has made operational savings of $1 million annually through a reduction in field staff and the use of outsourced third-party providers. Wellnex Life anticipates continued revenue and margin growth in the second half of FY25, targeting a positive EBITDA for H2 FY25.

Revenue and margin growth expected to continue in 2H FY25 with continued growth of brands in distribution and sales, and expansion of IP licensing arrangements, primarily driven by the international expansion of the Haleon arrangement. The company is targeting a positive EBITDA for H2 FY25.

Wellnex Life continues to see growth across the whole business in terms of revenue and margin, with a strong focus on profitability in FY25. The company's journey to becoming a strong branded business continues to be the focus for investment, ensuring that its improving margin brands drive revenue. The company's licensing revenue partnerships, with Haleon, Chemist Warehouse and Arrotex, will also accelerate revenue growth and contribute to the target of achieving positive EBITDA in H2 FY25.