Q4 FY25 Quarterly Report and Appendix 4C
Q4 FY25 sales up 22% to $6.6m; positive operating cash flow of $0.98m; $2.825m debt facility secured.
- Q4 FY25 Sales $6.6 million (prior $5.4 million)
- Brand Sales Q4 $4.9 million (prior $4.1 million)
- IP Licensing Q4 $1.7 million (prior $1.3 million)
- Operating Cash Flow Q4 $0.98 million (prior $0.04 million)
- FY25 Total Revenue $23.9 million
- 2H FY25 Gross Margin 36.6% (prior 22.6% in 1H FY25)
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Highlights
- Cash receipts of $6.5 million for the quarter in line with Q3 FY 25 (PCP) (Q3 FY25: $6.6 million).
- Positive net cash flow from operations of $0.98 million (Q3 FY25: $0.04 million).
- Sales for Q4 FY25 were $6.6 million, an increase of 22% compared to PCP (Q3 FY25: $5.4 million).
o Brand sales up 19.5% to $4.9 million
o IP Licensing up 30.8% to $1.7 million
- Internal review underway to maximise revenue, margins and operational profitability to build on the strong end to FY25.
- Additional debt funding of $2.825 million secured, to support margin enhancing initiatives and growth in the business.
Wellnex Life Limited (ASX/AIM:WNX) ("Wellnex Life" or the "Company") is pleased to provide the following operational update along with its Appendix 4C for the quarter ended 30 June 2025 ("Q4 FY25").
Wellnex Life for Q4 FY25 recorded sales of $6.6 million an increase of 22.2% compared to the PCP (Q3 FY25: $5.4 million), with brand sales increasing by 19.5% to $4.9 million and IP Licensing Sales increasing by 30.8% to $1.7 million.
Revenue overview
| Q4 FY25 | Q3 FY25 | % | |
|---|---|---|---|
| Brands | $4.9 million | $4.1 million | 19.5% |
| IP Licensing | $1.7 million | $1.3 million | 30.8% |
| Total | $6.6 million | $5.4 million | 22.2% |
The Company recorded cash receipts for Q4 FY25 of $6.5 million, in line with the previous quarter, with the Company recording a positive cash flow from operations of $0.98 million, compared to cash flow from operations in the PCP of $0.04 million.
Wellnex Life during the quarter had a cash outflow for marketing and advertising expenditure of $0.60 million, in line with the PCP of $0.59 million.
Product manufacturing and operating costs decreased to $3.2 million from $4.6 million for the PCP due to lower inventory purchases and a reduction in operating expenses. An increase in corporate costs to $0.5 million in Q4 FY25 was as a result of the UK IPO, which compares to $0.30 million in the previous quarter.
Repayment of borrowings of $9.2 million relates to the redemption of the convertible notes and the payments associated with the Company's trade and debtor facility.
Transaction costs in Q4 FY25 were $0.9 million, comprising the completion of the listing on the AIM market of the London Stock Exchange and the associated capital raising.
Payments made to related parties as outlined under section 6.1 of the Appendix 4C relate to the customary director fees and salaries paid during the quarter.
Financial Year 2025
Wellnex Life throughout FY25 has seen continuous improvement in gross margins and operational profitability, with a more disciplined approach to trade investment and capital expenditure with gross margins in 2H FY25 increasing to 37%, or $4.4 million, compared to a 23% gross margin for 1H FY25 of $2.7 million.
| Q1 FY25 | Q2 FY25 | 1H FY25 | Q3 FY25 | Q4 FY25 | 2H FY25 | Total | |
|---|---|---|---|---|---|---|---|
| Revenue | $4.4 million | $7.5 million | $11.9 million | $5.4 million | $6.6 million | $12 million | $23.9 million |
| Gross Margin | $1.1 million | $1.6 million | $2.7 million | $1.9 million | $2.5 million | $4.4 million | $7.1 million |
| % | 25% | 21.3% | 22.6% | 35.2% | 37.9% | 36.6% | 29.7% |
Q4 FY25
Wellnex Life during the quarter commenced an internal review of its operations to identify key brand assets to focus on and invest in, over the medium to long term, with the objective of maximising revenue, margins and operational profitability. As part of this review Wellnex Life divested the assets of The Iron Company which completed on 30 June 2025. The review process will continue in FY26 to build on the positive momentum created in 2H FY25.
During the period under review, the Company implemented a number of initiatives with the aim of enhancing margins going forward.
In Q4 FY25 the Company took advantage of the opportunity to purchase an extended supply of stock in respect of one of its leading brands, in the amount of $1.2 million, targeting a saving of in excess of 25% on the cost to produce the product. This should increase the margins for the Company as product is sold over the medium term.
In connection with the acquisition of Pain Away, Homart Pharmaceuticals ("Homart") purchased raw ingredients from the previous vendor on behalf of Wellnex Life, to assist the Company's then working capital constraints, as announced on 28 August 2024. At that time, it was agreed that if Homart did not become a supplier to the Company using those raw ingredients, the Company would repurchase the raw ingredients and use them with their current or other suppliers.
The Company has now made the decision to repurchase the raw ingredients from Homart to supply the current Company's manufacturing partner, with the intention of enhancing margins compared to a finished services arrangement.
In order to fund these initiatives, support the continued growth in the business, and to provide greater financial flexibility alongside its ScotPac invoice discounting facilities, the Group has entered into a loan facility via Reach Wholesale ("Reach") for the amount of $2.825 million (the "Facility"). The Facility, which is secured over the assets of the Group's key subsidiaries, is for a 24-month term at an interest rate of 14% for the term of the Facility. The coupon before arrangement and administration fees payable to Reach is broadly similar to the Group's existing financing facility arrangements.
In addition, Reach has indicated they would be willing to support the Company by entering into an additional Facility if the Company required them to do so, to ensure the Company has the maximum flexibility available to accelerate the growth in its operations. The Company expects to progress this additional financing in the near term.
In conjunction with the Facility, the Company has reduced the maximum commitment with ScotPac to $3.8m (from $5.3 million), of which c.$1.1 million currently remains available post the reduction in the facility.
Jeffrey Yeh (Non-Executive Director of Wellnex and director of Homart) is subscribing in the Facility in the amount of $825,000.
This ASX/AIM 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 | 30 June 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
| 1. | Cash flows from operating activities | 6,503 | 22,185 |
| 1.1 | Receipts from customers | ||
| 1.2 | Payments for | (67) | (405) |
| (a) research and development | |||
| (b) product manufacturing and operating costs | (3,231) | (14,249) | |
| (c) advertising and marketing | (601) | (2,508) | |
| (d) leased assets | |||
| (e) staff costs | (993) | (3,742) | |
| (f) administration and corporate costs | (492) | (1,448) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 0 | 0 |
| 1.5 | Interest and other costs of finance paid | (125) | (607) |
| 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) | (15) - | (56) 25 |
| 1.9 | Net cash from / (used in) operating activities | 979 | (804) |
* 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 | 30 June 2025 | ||
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 months) $A'000 | |
| 2. | Cash flows from investing activities | - | - |
| 2.1 | Payments to acquire or for: | ||
| (a) entities | |||
| (b) businesses | (239) | (8,149) | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) intellectual property | - | (7) | |
| (f) other non-current assets | - | - | |
| 2.2 | Proceeds from disposal of: | - | - |
| (a) entities | |||
| (b) businesses | - | - | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) intellectual property | - | - | |
| (f) 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) | - | (136) |
| 2.6 | Net cash from / (used in) investing activities | (239) | (8,292) |
| 3. | Cash flows from financing activities | 953 | 15,532 |
| 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 | (915) | (3,311) |
| 3.5 | Proceeds from borrowings | 3,692 | 16,803 |
| 3.6 | Repayment of borrowings | (9,265) | (20,472) |
| 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 | (5,535) | 8,552 |
| 4. | Net increase / (decrease) in cash and cash equivalents for the period | 5,292 | 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) | 979 | (804) |
| 4.3 | Net cash from / (used in) investing activities (item 2.6 above) | (239) | (8,292) |
| 4.4 | Net cash from / (used in) financing activities (item 3.10 above) | (5,535) | 8,552 |
| 4.5 | Effect of movement in exchange rates on cash held | - | 1 |
| 4.6 | Cash and cash equivalents at end of period | 497 | 497 |
| 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 | 497 | 5,292 |
| 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) | 497 | 5,292 |
| 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 | 267 | |
| 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 | (2,350) |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (Director's loan) | 2,513 | (2,525) |
| 7.4 | Total financing facilities | 7,813 | (4,875) |
| 7.5 | Unused financing facilities available at quarter end | 2,938 | |
Secured Revolving Trade and Debtor Facility with Scottish Pacific of $5.3 million Interest Rate: BBSY plus 4%.
| ABN | Quarter ended ("current quarter") | |
|---|---|---|
| 77 150 759 363 | 30 June 2025 | |
| Consolidated statement of cash flows | Current quarter $A'000 | Year to date (12 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) | 929 |
| 8.2 | Cash and cash equivalents at quarter end (item 4.6) | 497 |
| 8.3 | Unused finance facilities available at quarter end (item 7.5) | 2,938 |
| 8.4 | Total available funding (item 8.2 + item 8.3) | 3,435 |
| 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.
31 Jul 2025
Date: ...................................................................................
The Board of Directors
Authorised by: ...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
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