Elixinol Wellness reported a 9.5% revenue increase in Q4 FY25 alongside a 30% reduction in operating costs, setting a clear path to profitability under fresh executive leadership.
- Q4 FY25 revenue rose 9.5% quarter-on-quarter to $4.1 million
- FY25 revenue grew 3.6% year-on-year to $15.5 million
- Operating costs cut by approximately 30% compared to Q4 FY24
- Underlying operating cash flow positive for the quarter
- New CEO, CFO, and Chair appointed in late 2025 to drive growth strategy
Strong Finish to FY25
Elixinol Wellness (ASX – EXL) closed FY25 on a high note, reporting a 9.5% increase in revenue for the fourth quarter, reaching $4.1 million. This uplift reflects a seasonally strong quarter and a strategic shift towards higher-margin products and diversified revenue streams, particularly through e-commerce channels like Healthy Chef, which saw a 42% sales increase year-on-year in Q4.
Overall, FY25 revenue grew 3.6% to $15.5 million, signalling steady progress despite a challenging market environment. The company’s focus on product innovation in fast-growing health categories and a streamlined SKU approach across retail brands contributed to improved gross margins.
Cost Discipline and Cash Flow Improvement
One of the standout achievements for Elixinol was a structural reduction in operating costs by approximately 30% compared to the same quarter last year. Cost-cutting measures accelerated in Q3 FY25, targeting staffing, marketing, and corporate overheads. This leaner cost base enabled the company to deliver positive underlying operating cash flow in Q4, a critical milestone on the path to sustainable profitability.
Additionally, Elixinol completed a two-tranche capital raise totalling $2.5 million in the second half of FY25, providing financial flexibility to support growth initiatives and potential acquisitions.
Leadership Changes Signal New Growth Phase
Late 2025 saw a refreshed executive team take the helm, with Natalie Butler appointed CEO, Adam Dimitropoulos as CFO, and Gavin Evans stepping in as Non-executive Chair. This leadership trio brings extensive experience across finance, marketing, and investment banking, with a shared mandate to build a scalable, high-margin health food and wellness business.
The new management team is focused on operational momentum, cost efficiency, and leveraging Elixinol’s diversified portfolio; including brands like Mt Elephant, Soul Seeds, and The Healthy Chef; to capture growth in Australia’s expanding wellness market.
Positioned for FY26 and Beyond
Looking ahead, Elixinol is capitalising on megatrends such as preventative health, functional foods, and hemp category growth. The company aims to accelerate direct-to-consumer sales, maintain a structurally lower cost base, and pursue value-accretive mergers and acquisitions to scale its business.
With Australia’s wellness market forecast to reach AUD 307 billion by 2033, Elixinol’s strategic focus on premium-branded health food assets and Australian manufacturing capabilities positions it well to benefit from rising consumer demand for everyday nutrition and clean-label products.
Bottom Line?
Elixinol Wellness’s FY25 results and new leadership set the stage for a disciplined growth trajectory amid a booming wellness market.
Questions in the middle?
- How will Elixinol’s new leadership accelerate M&A activity in FY26?
- What impact will the cost reductions have on long-term profitability?
- Can Elixinol sustain momentum in high-margin e-commerce channels?