Wellnex Life’s FY25 Losses Deepened by One-Off Costs Despite Revenue Surge
Wellnex Life reported a strong 40.4% revenue increase to $23.6 million in FY25, alongside a 57% improvement in normalised EBITDA loss, signaling progress despite ongoing investment costs.
- 40.4% revenue growth to $23.6 million in FY25
- Gross profit rose 38% to $6.9 million
- Normalised EBITDA loss narrowed 57% to $2.2 million
- Net assets increased 85.6% to $11.3 million
- Successful dual listing on London’s AIM market strengthens balance sheet
Strong Revenue Growth Amid Strategic Expansion
Wellnex Life Limited, the Australian consumer healthcare company, has delivered a robust financial performance for the 12 months ending June 30, 2025. The company’s total revenue surged by 40.4% to $23.6 million, driven primarily by its portfolio of brands including the recently acquired Pain Away. This growth underscores Wellnex Life’s expanding footprint in the competitive healthcare market.
Gross profit also climbed 38% to $6.9 million, maintaining a consistent margin relative to revenue despite a strategic increase in trade investment during the first half of the year. This investment was recalibrated in the second half, resulting in a healthier gross margin of 37%, reflecting a more disciplined approach to cost management.
Navigating Losses with One-Off Costs and Corporate Moves
While the company reported an EBITDA loss of $11.6 million, this figure was significantly impacted by one-off non-cash expenses totaling $8.6 million and transaction and corporate fees of $3.1 million, largely associated with the Pain Away acquisition and the dual listing on the AIM market of the London Stock Exchange. When these exceptional items are excluded, Wellnex Life’s normalised EBITDA loss improved markedly by 57% to $2.2 million, signaling a positive trajectory towards profitability.
The company’s net assets nearly doubled, rising 85.6% to $11.3 million, bolstered by the strengthened balance sheet following the AIM listing. This dual listing not only enhanced capital flexibility but also enabled the settlement of deferred consideration and convertible notes, saving approximately $1.4 million annually in financing costs.
Looking Ahead – Growth Initiatives and Licensing Expansion
Wellnex Life is positioning itself for continued growth in FY26 with multiple initiatives aimed at driving revenue and improving margins. The company plans to expand its licensing opportunities both domestically and internationally, leveraging its established distribution channels and brand portfolio. The integration of Pain Away is expected to accelerate this momentum, reinforcing Wellnex Life’s status as a significant player in the consumer healthcare sector.
Investors will be watching closely to see how the company balances ongoing investment with operational efficiencies as it scales. The strategic moves made in FY25 lay a solid foundation, but execution in the coming year will be critical to translating growth into sustained profitability.
Bottom Line?
Wellnex Life’s FY25 results reveal promising growth tempered by investment costs, setting the stage for a pivotal FY26.
Questions in the middle?
- How will Wellnex Life manage trade investment to sustain margin improvements?
- What are the specific licensing deals planned for domestic and international markets?
- When can investors expect the company to return to positive EBITDA on a reported basis?
