Nuchev Limited reported a 12% increase in revenue to $12.38 million for the half-year ended December 2025, driven by growth in core products and offshore markets. However, the company’s net loss widened to $2.34 million amid ongoing investments in marketing, product development, and international expansion.
- Revenue up 12% to $12.38 million
- Net loss increases to $2.34 million
- Growth driven by Oli6® range, practitioner channel, and offshore markets
- Operating expenses rise due to marketing, staff costs, and intangible asset amortisation
- Debt-free balance sheet with stable net assets of $10.76 million
Revenue Growth Amid Expansion
Nuchev Limited has reported a solid 12% increase in revenue for the half-year ended 31 December 2025, reaching $12.38 million. This growth was underpinned by strong sales of its flagship Oli6® nutritional range across Australian pharmacy and grocery channels, as well as expanding offshore markets including China’s Cross Border e-Commerce platform and Vietnam. The recent acquisition of the bWellness business also contributed through the practitioner channel in Australia and New Zealand.
Widening Loss Reflects Strategic Investment
Despite the revenue uplift, Nuchev recorded a net loss after tax of $2.34 million, up from $1.58 million in the prior corresponding period. The increased loss reflects the company’s deliberate investment in growth initiatives such as marketing campaigns, product development, offshore market expansion, and scaling operational capabilities. Operating expenses rose notably, driven by higher staff costs, advertising spend, and amortisation of acquired intangible assets.
Margin Pressure and Cost Management
Gross profit increased to $5.72 million, but the gross margin slipped to 46.2% from 48.2% a year earlier. This margin compression was attributed to changes in sales mix, promotional activities, and the timing of offshore sales. Nuchev continues to manage pricing and input costs carefully amid competitive pressures and ongoing brand investment.
Financial Position and Liquidity
The company remains debt-free with net assets of $10.76 million, slightly down from $11.23 million six months earlier due to the loss incurred. Inventory levels increased to support anticipated sales, particularly in offshore markets. Cash and cash equivalents stood at $3.1 million at period end, supplemented by an undrawn $2 million working capital facility. Post-reporting period, Nuchev drew down $750,000 from this facility to support ongoing operations.
Outlook and Strategic Focus
Nuchev’s management emphasises its commitment to profitable growth through expanding its core brands, disciplined new product development, and diversification across channels and geographies. While current losses reflect upfront investments, the company aims to improve operating leverage and cost efficiency as scale increases. The Directors affirm confidence in the Group’s ability to continue as a going concern, supported by shareholder backing and prudent capital management.
Bottom Line?
Nuchev’s growth story hinges on converting current investments into sustainable profitability amid expanding international ambitions.
Questions in the middle?
- How will Nuchev’s offshore market expansion impact margins and profitability in the next 12 months?
- What is the timeline for new product launches to contribute meaningfully to revenue growth?
- How effectively can Nuchev manage rising operating costs while scaling its brand presence?