Nuchev’s Rapid Expansion Raises Questions on Breakeven Timeline

Strong Revenue Growth and Market Expansion

Nuchev Limited has delivered a striking performance in the third quarter of fiscal 2025, reporting group revenue of $5.6 million, a 215% increase compared to the same period last year. This surge was largely propelled by the launch of its flagship nutritional brand Oli6® in the Vietnamese market and the strategic acquisition of bWellness, which has broadened Nuchev’s footprint and diversified its sales channels.

The Vietnamese market entry, initiated in March, contributed incremental sales of $0.6 million in the quarter and $1.1 million year-to-date, marking a significant milestone in Nuchev’s Southeast Asian expansion. The company leveraged partnerships with local distributors such as H&S Group to establish a foothold in offline and online retail outlets, including Mother & Baby stores, tapping into Vietnam’s growing demand for premium nutritional products.

bWellness Acquisition Drives Scale and Channel Diversification

The acquisition of bWellness has been a pivotal factor in Nuchev’s growth story, contributing $7.2 million in sales year-to-date and expanding the group’s presence in the ANZ practitioner channel. This move has not only increased scale but also diversified revenue streams beyond traditional retail, enhancing resilience and market reach.

Oli6® Nutritionals continued to perform strongly across core markets. In ANZ retail, sales reached $1.7 million for the quarter, up 39% year-on-year and 30% quarter-on-quarter, buoyed by strategic partnerships with major retailers including Coles, Woolworths, and Chemist Warehouse. The brand’s 20% moving annual total (MAT) growth in ANZ infant formula sales notably outpaced the category’s modest 1% growth, underscoring Oli6®’s competitive positioning.

China CBEC and New Product Development Momentum

China cross-border e-commerce (CBEC) sales of Oli6® Nutritionals doubled year-on-year to $1.4 million in Q3 FY25, despite seasonal fluctuations linked to major sales events such as Double 11 and the upcoming 6/18 event. Nuchev’s timely launch of Oli6® Grow in October, aligned with Double 11, contributed $0.3 million in incremental sales during the quarter and $0.6 million year-to-date, illustrating the impact of new product development (NPD) on revenue growth.

Looking ahead, Nuchev is advancing its NPD pipeline, aiming to sustain momentum and deliver further incremental sales in the coming quarter. This innovation focus is critical to maintaining competitive advantage in the fast-evolving nutritional and wellness sector.

Financial Position and Strategic Outlook

Despite net operating cash outflows of $1.1 million in the quarter, primarily due to inventory restocking post major sales events, Nuchev ended March 2025 with a healthy cash balance of $3.8 million and no debt. The company maintains unused financing facilities of $0.6 million and positive working capital, positioning it well to support ongoing growth initiatives.

CEO Mick Myers emphasized the strategic importance of broadening market presence across ANZ, China, and Southeast Asia, highlighting Vietnam as a key growth opportunity driven by consumer demand for trusted international premium nutritional products. The company remains focused on achieving breakeven while continuing to deliver high-quality products that meet evolving consumer needs.