Nuchev Limited - Quarterly Activity Report and Strategic Acquisition - 29 July 2024
NUCHEV LIMITED (NUC) Share Update July 2024 Monday 29th
Nuchev Limited Reports Strong Growth and Strategic Acquisition
Nuchev Limited (ASX: NUC) has released its quarterly activity report, highlighting substantial revenue growth and the strategic acquisition of bWellness, which is expected to significantly enhance the company's market position and financial performance.
Instant Summary:
- Acquisition of bWellness, boosting proforma FY24 Group revenue to $21.2 million.
- FY24 revenue from Oli6® Nutritionals increased by 45% to $10.9 million.
- China CBEC FY24 revenue from Oli6® Nutritionals rose by 80% to $6.1 million.
- Successful launch of Oli6® Immunity+ products in China, contributing $0.8 million in FY24.
- Australian FY24 revenue from Oli6® Nutritionals increased by 16% to $4.7 million.
- Inventory holdings reduced by 41% over the last twelve months.
- Cash position at 30 June 2024 of $7.6 million, with an additional $0.6 million in financing facilities available.
Quarterly Highlights
Nuchev Limited has reported a significant boost in its financial performance for FY24, driven by the acquisition of bWellness and robust sales growth in its core product line, Oli6® Nutritionals. The acquisition of bWellness is expected to enhance the company's scale and enable channel diversification, with proforma FY24 Group revenue reaching $21.2 million.
Revenue from Oli6® Nutritionals saw a remarkable increase of 45%, reaching $10.9 million for FY24, compared to $7.5 million in the previous corresponding period. This growth was supported by strong sales in both the Chinese and Australian markets.
China Market Performance
In China, the company's cross-border e-commerce (CBEC) revenue from Oli6® Nutritionals surged by 80% to $6.1 million. The successful launch of Oli6® Immunity+ products exceeded expectations, contributing $0.8 million in FY24 at improved margins and representing approximately 7.5% of Oli6® Nutritionals sales revenue.
Australian Market Performance
In Australia, FY24 revenue from Oli6® Nutritionals increased by 16% to $4.7 million. The product continues to gain momentum in the Australian Retail Goat Infant Formula (GIF) market, with a 10% increase in sales on a moving annual total basis for the quarter.
Operational Efficiency
Nuchev's disciplined approach to inventory and working capital management has resulted in a 41% reduction in inventory holdings over the last twelve months. The company's cash position at 30 June 2024 was $7.6 million, including $0.6 million acquired from bWellness, with an additional $0.6 million in financing facilities available.
Strategic Outlook
Nuchev CEO Mick Myers emphasized the strategic importance of the bWellness acquisition and the company's continued focus on scaling its business, expanding its product portfolio, and moving towards positive cash flows. The company remains committed to pursuing growth opportunities in both existing and new markets.
The acquisition of bWellness and the strong revenue growth from Oli6® Nutritionals are likely to positively impact Nuchev Limited's stock price. The company's improved cash position and reduced inventory levels also indicate strong financial health. Investors may view these developments as a sign of the company's potential for sustained growth and profitability.
Investor Reaction:
Analysts have responded positively to Nuchev's quarterly report, highlighting the strategic acquisition of bWellness and the impressive revenue growth from Oli6® Nutritionals. Investors are optimistic about the company's future prospects, particularly in the Chinese and Australian markets.
Conclusion:
Investors should keep an eye on Nuchev Limited's continued growth and strategic initiatives. The company's strong financial performance and strategic acquisition position it well for future success. Consider subscribing to our newsletter for regular updates on Nuchev Limited and other stock market news.