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SYDNEY - Wellnex Life Limited (ASX/AIM:WNX) reported sales of $6.6 million for the fourth quarter of fiscal year 2025, representing a 22.2% increase compared to the previous quarter, according to a quarterly report released Thursday.
The health and wellness company recorded cash receipts of $6.5 million for the quarter ended June 30, 2025, in line with the previous quarter’s $6.6 million. Wellnex achieved positive net cash flow from operations of $0.98 million, a significant improvement from $0.04 million in the third quarter.
Brand sales rose 19.5% to $4.9 million, while IP licensing revenue increased 30.8% to $1.7 million compared to the previous quarter.
The company reported improved gross margins in the second half of FY25, reaching 37% ($4.4 million) compared to 23% ($2.7 million) in the first half of the fiscal year.
Wellnex has secured additional debt funding of $2.825 million through a loan facility with Reach Wholesale to support margin enhancement initiatives and business growth. The 24-month facility carries a 14% interest rate and is secured over assets of the group’s key subsidiaries.
As part of this financing arrangement, Jeffrey Yeh, a non-executive director of Wellnex, is subscribing $825,000 to the facility.
The company has also reduced its maximum commitment with ScotPac to $3.8 million from $5.5 million, with approximately $1.1 million currently remaining available.
Wellnex stated it has commenced an internal review of operations to identify key brand assets for medium to long-term investment, aiming to maximize revenue, margins and operational profitability. As part of this review, the company divested The Iron Company assets on June 30, 2025.
Based on a press release statement, the company implemented several margin enhancement initiatives during the quarter, including purchasing extended supply of stock for one of its leading brands at a targeted saving exceeding 25%.
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