- Health and beauty technologies business Anagenics (AN1), has commenced a strategic review to build revenue following a recent change in leadership
- The company says the strategic review has involved prioritising key initiatives to build revenue and reduce unnecessary operating costs, with the aim to improve profitability and operating cash flow.
- However, the company believes FY22 profit is still likely to be impacted by one-off costs associated with structural changes, and impacts of COVID-19 as well as regulatory changes in China which has significantly contributed to the Group’s overall revenue.
- Though the company believes it will be in a “strong” position to improve profitability for FY23 largely due to the AN1’s recent acquisition of BLC Cosmetics
- Shares in AN1 are sitting in the grey at 4.8 cents
Health and beauty technologies business Anagenics (AN1) has commenced a strategic review to build revenue following its recent change in leadership.
It comes after Maria Halasz resigned as CEO and Managing Director, and Matthew Dudek took over as acting CEO on February 28.
The company says the strategic review has involved prioritising key initiatives to build revenue and reduce unnecessary operating costs, with the aim to improve profitability and operating cash flow.
Anagenics says it plans to cut employment and operating costs with a combined savings estimate of more than $1 million.
However, the company believes FY22 profit is still likely to be impacted by one-off costs associated with structural changes, the impacts of COVID19 as well as regulatory changes in China.
It believes it will be in a “strong” position to improve profitability for FY23.
This is largely due to the AN1’s acquisition of BLC Cosmetics in November 2021, which has significantly contributed to the group’s overall revenue; as well as annualised cost savings.
The company has also outlined a plan to develop new products and pricing and will put existing resources into its “White Label” revenue channel, a line of products manufactured by Anagenics which are rebranded and sold by another company.
In addition, Anagenics says with a strong foundation for profitability in FY23 and a strong cash balance, it will be well positioned to pursue complementary mergers and acquisitions with the support of its strategic shareholder Hancock & Gore.
Shares in AN1 are sitting in the grey at 4.8 cents at 1:35pm AEDT.