Wellnex Life’s Turnaround Gains Momentum with EBITDA Boost and New Distribution Deals
Wellnex Life reports a $2.4 million EBITDA improvement in H1 FY26 and reaches breakeven by Q2, supported by strong Pain Away sales and expanded distribution.
- H1 FY26 EBITDA up $2.4 million year-on-year
- Group gross margin rises to 31.3%
- Q2 FY26 operating at breakeven
- Pain Away sales hit $3.3 million with improved margins
- New distribution agreements with Priceline and Costco trials
Financial Turnaround Takes Shape
Wellnex Life Limited has delivered a promising update ahead of its unaudited half-year results, signalling a clear turnaround in its financial performance. The company’s Executive Chairman, Ash Vesali, highlighted a $2.4 million improvement in EBITDA for the first half of fiscal 2026 compared to the prior year, alongside a notable increase in gross margin from 22.8% to 31.3%. These gains reflect the impact of operational simplification and tighter cost controls implemented by management.
December 2025 continued this positive trend with EBITDA rising $0.7 million year-on-year, enabling the group to close the second quarter at breakeven. This milestone provides a solid foundation as Wellnex moves into the second half of the financial year, aiming to sustain momentum and build shareholder value.
Pain Away Brand Strengthens Market Position
The company’s flagship product, Pain Away, has maintained its market position while improving profitability in a highly competitive category. Quarterly sales for Q2 FY26 reached $3.3 million, with gross margins improving by 7.6%. Notably, the heat patch segment grew 25% in Australian pharmacies, outpacing the category’s 2% growth and lifting Pain Away’s market share to 18.5%, a three-point increase year-on-year.
Roll-on products also showed strong growth, expanding 17% compared to just 0.3% for the broader topical pain sector. Wellnex plans to launch a third roll-on SKU in April 2026, aiming to further consolidate its leading position. Distribution momentum is accelerating, with Priceline introducing five new SKUs nationwide and major pharmacy wholesalers confirming multiple new product launches.
Expanding Distribution Channels and Manufacturing Focus
Wellnex has secured new distribution agreements that could broaden its market reach significantly. Costco Australia and Costco New Zealand are set to trial an exclusive Pain Away heat patch in April 2026, potentially opening a lucrative channel for the company. This move complements the recent launches through Priceline and pharmacy wholesalers, underscoring Wellnex’s strategic focus on expanding its footprint.
On the manufacturing front, the company is working closely with partners to enhance planning discipline and develop a more productive, sustainable operating model. This approach aims to improve commercial value delivery and support the company’s long-term growth ambitions.
As Wellnex Life enters the second half of FY26, the company’s leadership remains confident that the combination of improved financial metrics, product innovation, and expanded distribution will drive consistent performance and create lasting shareholder value.
Bottom Line?
Wellnex Life’s progress sets the stage for a pivotal H2 FY26 as new product launches and distribution trials unfold.
Questions in the middle?
- Will the planned April 2026 roll-on launch sustain Pain Away’s growth trajectory?
- How will the Costco trial impact Wellnex’s market penetration in Australia and New Zealand?
- Can the company maintain cost discipline while scaling up production and distribution?
