Q3 FY25 Quarterly Report and Appendix 4C
Q3 FY25 cash receipts up 69% to $6.6m; AIM listing completed; convertible notes redeemed.
- Q3 FY25 cash receipts $6.6 million (prior $3.9 million)
- Q3 FY25 sales $5.3 million (prior $3.9 million)
- 9-month sales FY25 $17.2 million (prior $9.0 million)
- Net cash from operations Q3 $0.04 million (prior $-0.80 million)
- Annual cost savings $1.4 million
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Highlights
- Quarterly cash receipts of $6.6 million, an increase of 69% compared to the previous quarter (Q2 FY25: $3.9 million)
- Positive net cash flow from operations $0.04 million compared to negative cash flow result in the previous quarter (Q2 FY25: $0.80 million)
- Sales for Q3 FY25 of $5.3 million, an increase of 35% compared to the prior comparative period PCP (Q3 FY24: $3.9 million), with the increase largely driven by:
o Sales from Wellnex Life's brands up 41% to $4.1 million compared to PCP (Q3 FY24: $3.0 million)
o Sales from IP licensing up 36% to $1.3 million compared to PCP (Q3 FY24: $0.95 million)
- Completion and admission to the AIM market of the London Stock Exchange ("AIM"). The London Stock Exchange is home to the some of the world's largest consumer healthcare companies
- Payment of the deferred consideration for the acquisition of Pain Away, which will save the Company $0.6 million in annual costs
- Extinguishment of the convertible notes post completion of the quarter, which will save the Company $0.85 million in annual interest costs
Wellnex Life Limited (ASX:WNX) ("Wellnex Life" or the "Company") is pleased to provide the following operational update along with its Appendix 4C for the quarter ended 31 March 2025 ("Q3 FY25").
The Company recorded cash receipts for Q3 FY25 of $6.6 million, an increase of 69% compared to the previous quarter (Q2 FY25 $3.9 million), with the Company recording a positive cash flow from operations of $0.04 million compared to negative cash flow from operations in the previous quarter (Q2 FY25: $0.80 million).
During the quarter, Wellnex Life increased marketing and advertising expenditure to $0.56 million compared to $0.36 million in the previous quarter. Product manufacturing and operating costs also increased to $4.6 million compared to $3.0 million in the previous quarter. These increases are a direct result of the increased sales for the period compared to the previous period.
During the period, Wellnex Life recorded sales of $5.3 million, an increase of 35% compared to PCP (Q3 FY24: $3.9 million), with 77% of those sales generated from Wellnex Life's high margin brands. This contributed to Wellnex Life generating sales in the first 3 quarters of FY25 of $17.2 million an increase of 91% compared to the same period in FY24 (3Q FY24 $9.0 million).
| July - March 2024 | July - March 2025 | % Change | |
|---|---|---|---|
| Brands | $5.9 million | $12.5 million | 110% |
| IP Licensing | $3.1 million | $4.7 million | 52% |
| Total | $9.0 million | $17.2 million | 91% |
London Stock Exchange (LSE)
Wellnex Life was admitted to AIM on 21 March 2025. The LSE is home to some of the world's largest consumer healthcare companies in the world. This has enabled the Company to fully satisfy the deferred consideration for the acquisition of Pain Away and post close of the quarter redeem the balance of the convertible notes. This is a transformational moment for the Company, with the strengthening of the balance sheet leading to savings of $1.4 million in annual costs. The AIM listing is also expected to accelerate the Company's international expansion with its innovative brands and products.
Transaction Costs
Transaction costs in Q2 FY25 were $1.0 million, comprising the completion of the listing on AIM and the associated capital raising.
Related Parties Payments
Payments made to related parties as outlined under section 6.1 of the Appendix 4C relate to the director fees and salaries paid during the quarter.
This announcement has been authorised by the Board of Wellnex Life Limited (ASX/AIM:WNX).
To learn more, please visit: www.Wellnex Lifelife.com.au/
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
WELLNEX LIFE LIMITED
| ABN | Quarter ended ("current quarter") | ||
|---|---|---|---|
| 77 150 759 363 | 31 March 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 | |
| 1. | Cash flows from operating activities | 6,597 | 15,682 |
| 1.1 | Receipts from customers | ||
| 1.2 | Payments for | (71) | (338) |
| research and development | |||
| product manufacturing and operating costs | (4,692) | (11,018) | |
| advertising and marketing | (565) | (1,906) | |
| leased assets | |||
| staff costs | (876) | (2,749) | |
| administration and corporate costs | (273) | (955) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 0 | 0 |
| 1.5 | Interest and other costs of finance paid | (111) | (482) |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 1.9 | Other (GST refund/(paid)) Other (costs for CBDG administration) | 34 - | (41) 25 |
| 1.9 | Net cash from / (used in) operating activities | 42 | (1,783) |
*Product manufacturing of circa $1.5 million for the launch of Pharmacy Own and the launch of Nighty Night and new products for Wakey Wakey **Circa one off marketing expenses of $400,000 for the preparation for the launch of new Wakey Wakey lines and Nighty Night
| ABN | Quarter ended ("current quarter") | ||
|---|---|---|---|
| 77 150 759 363 | 31 March 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 | |
| 2. | Cash flows from investing activities | - | - |
| 2.1 | Payments to acquire or for: | ||
| (a) entities | |||
| businesses | (7,298) | (7,910) | |
| property, plant and equipment | - | - | |
| investments | - | - | |
| intellectual property | - | (7) | |
| other non-current assets | - | - | |
| 2.2 | Proceeds from disposal of: | - | - |
| (a) entities | |||
| businesses | - | - | |
| property, plant and equipment | - | - | |
| investments | - | - | |
| intellectual property | - | - | |
| other non-current assets | - | - | |
| 2.3 | Loan repayment from other entity | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (cash acquired from CBDG Administration) | (53) | (136) |
| 2.6 | Net cash from / (used in) investing activities | (7,298) | (8,053) |
| 3. | Cash flows from financing activities | 12,598 | 14,579 |
| 3.1 | Proceeds from issues of equity securities (excluding convertible debt securities) | ||
| 3.2 | Proceeds from issue of convertible debt securities | - | - |
| 3.3 | Proceeds from exercise of options | - | - |
| 3.4 | Transaction costs related to issues of equity securities or convertible debt securities | (1,006) | (2,396) |
| 3.5 | Proceeds from borrowings | 4,078 | 13,111 |
| 3.6 | Repayment of borrowings | (3,402) | (11,207) |
| 3.7 | Transaction costs related to loans and borrowings | - | - |
| 3.8 | Share applications to be refunded | - | - |
| 3.9 | Other (repayment of lease liabilities) | - | - |
| 3.10 | Net cash from / (used in) financing activities | 12,269 | 14,087 |
| 4. | Net increase / (decrease) in cash and cash equivalents for the period | 279 | 1,040 |
| 4.1 | Cash and cash equivalents at beginning of period | ||
| 4.2 | Net cash from / (used in) operating activities (item 1.9 above) | 42 | (1,783) |
| 4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (7,298) | (8,053) |
| 4.4 | Net cash from / (used in) financing activities (item 3.10 above) | 12,269 | 14,087 |
| 4.5 | Effect of movement in exchange rates on cash held | 1 | 0 |
| 4.6 | Cash and cash equivalents at end of period | 5,292 | 5,292 |
| 5. | Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter $A'000 | Previous quarter $A'000 |
| 5.1 | Bank balances | 5,292 | 279 |
| 5.2 | Call deposits | - | - |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (funds held in trust) | - | - |
| 5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 5,292 | 279 |
| 6. | Payments to related parties of the entity and their associates | Current quarter $A'000 | |
| 6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 215 | |
| 6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - | |
| 7. | Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end $A'000 | Amount drawn at quarter end $A'000 |
| 7.1 | Loan facilities | 5,300 | (3,414) |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (Director's loan) | 2,513 | (2,525) |
| 7.4 | Total financing facilities | 7,813 | (5,939) |
| 7.5 | Unused financing facilities available at quarter end | 1,874 | |
Secured Revolving Trade and Debtor Facility with Scottish Pacific of $5.3 million Term: Minimum of 24 months (July 2023) Interest Rate: BBSY plus 4%.
| ABN | Quarter ended ("current quarter") | |
|---|---|---|
| 77 150 759 363 | 31 March 2025 | |
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| 8. | Estimated cash available for future operating activities | $A'000 |
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | 42 |
| 8.2 | Cash and cash equivalents at quarter end (item 4.6) | 5,292 |
| 8.3 | Unused finance facilities available at quarter end (item 7.5) | 1,874 |
| 8.4 | Total available funding (item 8.2 + item 8.3) | 7,166 |
| 8.5 | Estimated quarters of funding available (item 8.4 divided by item 8.1) | N/A |
| 8.6 | If item 8.5 is less than 2 quarters, please provide answers to the following questions: |
N/A
N/A
N/A
Compliance statement
2 This statement gives a true and fair view of the matters disclosed.
08 Apr 2025
Date: ...................................................................................
The Board of Directors
Authorised by: ...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.