Q4 FY26 Quarterly Update and Appendix 4C
Wellnex Life Limited reported a second consecutive quarter of positive net operating cash flow, with H2 FY26 operating cash flow reaching approximately $0.5 million, a significant turnaround from H1 FY26's outflow of $3.1 million. Customer receipts for FY26 totalled $22.0 million, with H2 FY26 receipts of $12.4 million increasing 28% over H1 FY26. The company ended the quarter with $862k in cash, up from $217k, and maintained cost discipline, evidenced by a 21% quarter-on-quarter reduction in staff costs. Total revenue for Q4 FY26 was $7.0 million, a 37.3% increase from Q3 FY26.
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HIGHLIGHTS
- Second consecutive quarter of positive net operating cash flow
- H2 FY26 operating cash flow of approximately $0.5 million, a turnaround of approximately $3.6 million (H1 FY26: outflow of $3.1 million).
- Customer receipts of $5.7 million for the quarter and $22.0 million for FY26; H2 FY26 up 28% on H1 FY26
- Cash at 30 June 2026 of $862k, up from $217k at 31 March 2026
- Continued cost discipline, with staff costs down 21% quarter-on-quarter
Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex" or "the Company") is pleased to report a second consecutive quarter of positive net operating cash flow, confirming the turnaround momentum and the effectiveness of the Company's focus on revenue quality and cost discipline.
Receipts from customers were $5.7 million for the quarter, taking total receipts for FY26 to $22.0 million. Receipts for the second half of FY26 of $12.4 million were 28% higher than the first half. Receipts for the quarter of $5.7 million included approximately $2.4 million from the Company's licensing partnership with Haleon, alongside continued strong receipts from the Company's major retail and pharmacy channel partners including Coles, Woolworths, Chemist Warehouse and the major pharmacy wholesalers.
Net operating cash flow for the quarter was positive at $63k (Q3 FY26: $412k positive). Operating cash flow for the second half of FY26 was approximately $0.5 million positive, compared with an outflow of $3.1 million in the first half, a turnaround of approximately $3.6 million half-on-half. This improvement was driven by higher receipts and disciplined cost management, with staff costs reducing 21% quarter-on-quarter to $588k and advertising and marketing spend held at $518k.
Revenue
| Revenue | Q4 FY26 | Q3 FY26 | % Change |
|---|---|---|---|
| Brands | $4.4 million | $3.5 million | 25.7% |
| IP Licensing | $2.6 million | $1.6 million | 62.5% |
| Total | $7.0 million | $5.1 million | 37.3% |
| Gross Profit | $2.0 million | $1.5 million | 33.3% |
Cash Position and Funding
The Company closed the quarter with cash and cash equivalents of $862k, up from $217k at 31 March 2026.
The Company's financing facilities comprise a secured revolving trade and debtor facility with Scottish Pacific and a secured loan facility with Reach Wholesale, details of which are set out in section 7 of the accompanying Appendix 4C.
Payments to Related Parties
Payments to related parties and their associates during the quarter, as set out in item 6.1 of the Appendix 4C, totalled $296k. These payments comprised directors' fees, executive remuneration and associated superannuation paid to directors and director-related entities in the ordinary course of business. The repayment date for the loans from former directors has been extended to end of August 2026 at no additional cost to the Company.
Outlook
Wellnex enters FY27 with positive operating cash flow momentum, an improving cash position and an established platform across branded consumer health products and IP licensing. The Company remains focused on building on the second-half turnaround through continued revenue growth with its major retail, pharmacy and licensing partners, and on maintaining the cost discipline delivered through FY26. As previously announced, the Company continues to assess opportunities to strengthen the balance sheet.
This ASX/AIM announcement has been authorised by the Board of Wellnex Life Limited (ASX/AIM:WNX).
| 5.1 | Bank balances | 862 | 217 |
| 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) | 862 | 217 |
| 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 | 296 | |
| 6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | ||
| 7.1 | Loan facilities | 9,195 | (6,716) |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (Director's loan) | 2,675 | (2,675) |
| 7.4 | Total financing facilities | 11,870 | (9,391) |
| 7.5 | Unused financing facilities available at quarter end | 2,479 |
- Secured Revolving Trade and Debtor Facility with Scottish Pacific of $3.8 million Interest Rate: BBSY plus 6.8%. 2. Secured loan facility with Reach Wholesale of up to $5.325 million at 14% per annum expiring August 2027. The amount shown in Section 7 is for the full amount drawn down ($5.325 million) at the close of the period
| 8. | Estimated cash available for future operating activities | $A'000 |
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | 63 |
| 8.2 | Cash and cash equivalents at quarter end (item 4.6) | 862 |
| 8.3 | Unused finance facilities available at quarter end (item 7.5) | 2,479 |
| 8.4 | Total available funding (item 8.2 + item 8.3) | 3,341 |
| 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: |
Compliance statement
2 This statement gives a true and fair view of the matters disclosed.
Date: ...................................................................................
The Board of Directors
Authorised by: ...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
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