- Wellfully (WFL) reports a 19 per cent year-on-year decrease in revenue to $463,000 and a 72 per cent increase in losses after tax to $6.4 million in FY21
- Wellfully increased spending over the year which partly assisted with its operations such as launching its RÉDUIT brand, partnering with global companies and expanding its facilities
- To boost its cash position, WFL launched two equity raises which raised a combined $8.2 million and it ended the financial year with $2.72 million in cash
- Looking ahead, Wellfully has partnerships and multiple product launches in the pipeline which will be assisted by its new facilities in China and Switzerland
- Company shares are down 9.52 per cent to trade at 9.5 cents
Wellfully (WFL) has released its annual report for the 2021 financial year.
The science-based wellness company posted a 19 per cent year-on-year decrease in revenue to $463,000.
It also announced a 72 per cent increase in losses after tax from $3.7 million in FY20 to $6.4 million in FY21.
The less than pleasing results for FY21 didn’t come as too much of a surprise to the company after reporting a 177 per cent increase in net consolidated losses in the first half of the financial year.
The consumer discretionary stock attributed the first half’s results to higher expenditure and foreign exchange losses.
Similarly, this has continued into the second half, with spending increasing in areas such as director and employee benefits, freight and courier, marketing and operations, materials, and occupancy expenses.
Despite the losses, Wellfully achieved some important milestones over the course of FY21.
In the first quarter, Wellfully launched a campaign of 20 products under its RÉDUIT branch which is its first wholly-owned consumer brand focused on sustainability and design.
The range includes skin and hair treatment devices as well as skinpod and hairpod technologies.
Wellfully then launched the brand with The Hut Group (THG) who is a global beauty eCommerce operator. This partnership exposed RÉDUIT to customers across THG’s platforms such as lookfantastic.com, ry.com.au and skinstore.com, which reach more than 10 million consumers.
The company also entered a content partnership with the Victoria Beckham label which promoted RÉDUIT as the official hair technology partner for the Victoria Beckham Spring Summer 2021 collection.
Further deals included with Cult Beauty, Shaver Shop (SSG), and Russia-based luxury consumer brand, BORK.
BORK owns 130 stores, 10 third-party retailers and has over 350,000 direct consumers. The initial contract period runs to September 1, 2022 with initial forecast sales of US$1.5 million (A$2 million).
Wellfully completed the construction and fitout of a new facility in Switzerland which will be used as for formulations and topical productions. The second build phase of a facility in China was also competed which will be used for device design and development activities.
The company also has a number of products in the pipeline which are expected to launch in the current financial year.
While it ended the financial year with $2.72 million in cash, up from the $612,172 it started with, Wellfully had some cash boosting assistance from two equity raises.
In the first quarter of FY21, WFL raised $3.74 million before costs through an entitlement offer and placement which was followed by an oversubscribed placement in the third quarter which raised $4.5 million.
Company shares were down 9.52 per cent to trade at 9.5 cents at 12:05 pm AEST.