ASX Announcement
For personal use only
JUNE 2022 QUARTERLY ACTIVITIES REPORT
UNITED STATES AND SOUTHEAST ASIA EXPANSIONS ON TRACK
KEY HIGHLIGHTS FOR Q2 FY22
- Commenced Asia Pacific sell-through of New Zealand manufactured product; APAC sales up 958% quarter on quarter (QoQ)
- Continued retail expansion rollout in the US with full product ranging on Kroger.com, Ralphs.com, and Smiths.com
- Post reporting period distribution agreement signed with United Natural Foods Inc. (NYSE: UNFI)
- Revenue from sales of Healthy Heights® products of US$755k1 (excluding Italy) up 14% on pcp despite stock shortages during the first month of the quarter, which have now been resolved
- Overall revenue of US$755k, up 20% QoQ (US$631k); but down 26% on pcp (US$1,030k) due to timing of an initial order from Italy;
- Quarterly cash receipts from customers of US$684k, up 12% QoQ (US$609k) but down 20% on pcp (US$859k)
- Appointed Peter Osborne as a strategic advisor for China and Southeast Asia and Yossi Nizhar as Chief Financial Officer
28 July 2022 - Nutritional Growth Solutions Ltd. (ASX: NGS), a global provider of scientifically formulated and clinically studied paediatric nutritional products, is pleased to provide a business update for the quarter ending 30 June 2022 (Q2 FY22), along with its Appendix 4C quarterly cash flow report.
Milestone initiatives delivering growth in the US and Southeast Asia
Nutritional Growth Solutions has delivered a solid June quarter for revenue and cash receipts, with sell-through of New Zealand manufactured Healthy Heights® in China driving sales growth of 958% in the region.
In the US, the continued rollout of the retail expansion strategy continued with new agreements with Kroger.com, Ralphs.com, and Smiths.com to drive continued growth.
Quarterly overall revenue was US$755k, down on the prior corresponding period (pcp), due to the timing of an initial order from Italy in 2021. Quarterly revenue from sales of Healthy Heights® products in the US and China are up 14% on pcp.
Commenting on the Company's progress during the quarter, Nutritional Growth Solutions CEO Liron Fendell said, "Our expansions in the US and Southeast Asia are gathering momentum, playing a key role in growing Healthy Heights® into a global household name in child nutrition. Ranging the full Healthy Heights® portfolio on the ecommerce site of Kroger, the US' third largest general retailer
1 Unaudited
For personal use only
behind Walmart and Amazon, is a testament to our team's hard work over the quarter and complements our recent agreements with Walmart.com and Rangeme.com.
"With our new manufacturing facility in New Zealand now fully operational and distributing into Southeast Asia, sales increased 958% in China compared to the previous quarter, demonstrating the growing demand for paediatric products that are safe and healthy to provide optimal nutritional to children during their most formative years. Our agreements with Chemist Warehouse China, JD.com, Lazada and Shopee are well placed to scale given we have sufficient NZ manufactured product to ramp up stock levels as the demand increases in the region.
"The appointments of industry specialists Mark Sargent and Peter Osborne, will ensure our operations in the Asia Pacific are overseen by the best talent in the industry and are a key part in growing Healthy Heights® in the lucrative China and Australian markets."
OPERATIONAL UPDATE
Sales commenced on Kroger.com, Ralphs.com, and Smiths.com as part of US retail expansion
The full Healthy Heights® range commenced sales on the ecommerce channel of United States' largest supermarket chain by revenue, Kroger (NYSE: KR) which has reported an increase in sales of 113% across 2020 and 2021. All Healthy Heights® products are also available on the ecommerce channels of Kroger subsidiaries, Ralphs and Smith's Drug and Food.
Ranging on Kroger.com is a milestone in NGS' grocery and retail expansion strategy in the US and compliments recent ranging agreements with Walmart.com and Rangeme.com
US Distribution deal signed with United Natural Foods Inc. (NYSE: UNFI)
Post reporting period, NGS signed a distribution agreement with the largest natural products wholesale distributor in the US, United Natural Foods Inc. (NYSE: UNFI) which will expand Healthy Heights'® retail and online presence across the United States.
The entire 22 product range, including the recently launched KidzProtein and KidzProtein Vegan lines, will be available wholesale from July 2022, via UNFI's marketplace platform or physical distribution centres. Its network of reputable natural product superstores includes independent retailers, conventional supermarket chains and ecommerce retailers such as Whole Foods, The Fresh Market, Jerry's Foods, Superior Grocers and Vallarta Supermarkets.
New senior appointments
During the quarter NGS appointed Peter Osborne as a strategic advisor for China and Southeast Asia and Yossi Nizhar as Chief Financial Officer.
Peter Osborne commenced as a Strategic Advisor for China and Southeast Asia, bringing more than 20 years' industry experience to the role. Peter was previously Managing Director Asia for Blackmores Limited (ASX:BKL) and has served as Australian Senior Trade Commissioner in Beijing, Shanghai, Hong Kong and Taiwan. Currently, Peter is a Strategic Advisor in Asia for ASX listed retail and consumer goods companies, Ecofibre Limited (ASX:EOF) and BWX Limited (ASX:BWX).
Yossi Nizhar was appointed Chief Financial Officer (CFO) effective 1 July 2022. Yossi joins NGS with more than 20 years' accounting experience in the biotech and international pharmaceutical industries. As a certified public accountant, he served for approximately 10 years as Chief Financial Officer, Israel
For personal use only
for AstraZeneca, one of the largest global pharmaceutical companies. Most recently, he was CFO for Kadimastem (TASE:KDST), a global innovator in cell therapy that develops regenerative therapies for incurable diseases
LOOKING AHEAD
"Our current agreements with some of the US' most well-known companies, sees Healthy Heights® in front of millions of parents when considering purchases for nutritional paediatric products. We will continue to rollout to more retailers to ensure more parents have access to our nutritional paediatric products and in turn, set NGS up for a strong future as sales momentum increases.
"We will place increased focus on capturing the opportunities in Southeast Asia now that we have a fully operational manufacturing facility in New Zealand and distribution partners in the region. There is increasing demand for Healthy Heights® in this market, with sales increasing dramatically throughout the quarter as parents look for safe and healthy products to ensure their children are receiving the best nutrition to support their growth development.
"The continued rollout of these initiatives along with entering new markets and expanding our product range, will play a large role in growing Healthy Heights® into a global household name in child nutrition."
WEBINAR DETAILS
An investor webcast will take place on Thursday 28 July 2022 at 2:30pm AEST. Following the briefing, participants will have an opportunity to ask questions via an online facility. Please pre-register for webcast via:
https://us02web.zoom.us/webinar/register/WN_MawrHsSKS4a8Qnpk4Ypmcg
FINANCIAL OVERVIEW
The Company achieved quarterly customer collection of US$684K, down 20% on Q2 FY21.
Operating cash outflows of US$1,676k for the quarter included:
- US$995k in advertising and marketing;
- US$75k in research and development; and
- US$1,085 in product manufacturing and operating costs
- US$205 in other, general and administrative expenses.
The Company's cash balance as of 30 June 2022 is US$1,421k.
Payments made to related parties and their associates shown in the Appendix 4C are as follows:
-
Item 6.1 includes US$55k directors' fees and US$131k payroll expenses
-ENDS-
This announcement has been authorised for release by the Board of Directors of Nutritional Growth Solutions Ltd.
For personal use only
For more information: | |
Investors | |
Liron Fendell | Eric Kuret |
CEO and Managing Director | Market Eye |
liron@ngsolutions.co | Eric.kuret@marketeye.com.au |
+61 417 311 335 |
Media
Tristan Everett
Market Eye
P: +61 403 789 096
For personal use only
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
Nutritional Growth Solutions Ltd. | |
ABN | Quarter ended ("current quarter") |
642 861 774 | On 30/06/2022 |
Consolidated statement of cash flows | Current quarter | Year to date | ||
$US'000 | (6 months) | |||
$US'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 684 | 1,293 | |
1.2 | Payments for | |||
(a) | research and development | (75) | (154) | |
(b) product manufacturing and operating | (1,085) | (1,482) | ||
costs | ||||
(c) | advertising and marketing | (995) | (1,812) | |
(d) | leased assets | - | - | |
(e) | ||||
(f) administration and corporate costs | (205) | (543) | ||
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | - | - | |
1.5 | Interest and other costs of finance paid | - | - | |
1.6 | Income taxes paid | - | - | |
1.7 | Government grants and tax incentives | - | - | |
1.8 | Other (provide details if material) | - | - | |
1.9 | Net cash from / (used in) operating | (1,676) | (2,698) | |
activities | ||||
2. | Cash flows from investing activities | |||
2.1 | Payments to acquire or for: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) property, plant and equipment | (3) | (3) | ||
(d) | investments | - | - | |
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - |
ASX Listing Rules Appendix 4C (17/07/20) | Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Nutritional Growth Solutions Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 23:47:08 UTC.