In an over stimulating world, where infinite options can indeed be overwhelming, making an informed decision especially when it comes to our health; can be mentally draining. In this respect, companies like Nutritional Growth Solutions (ASX: NGS), are trying to shape the future of clean eating with their products and collaborations. Recently, NGS, a U.S based health, nutrition and wellness company partnered with The Healthy Chef for their North American expansion. As a result, NGS and The Healthy Chef are anticipating revenue of USD $1.5 million within the first year from the partnership.
Teresa Cutter, an Australian nutritionist, wellness coach and chef (who founded The Healthy Chef in 2006), has been producing wholefood-based wellness and health products ever since. With 17 years of experience, Teresa has been redefining the relationship between food and health, by using wholefood based ingredients that are free from gluten, fillers, unnecessary sugars and are locally produced.
Teresa Cutter, the founder of The Healthy Chef, commented: “This strategic partnership with an industry leader in nutrition offers an unrivalled opportunity for the Healthy Chef brand to reach millions more consumers seeking health and wellness products.
“Both businesses share a common vision regarding the future of food, health and wellbeing. I look forward to partnering with NGS in North America to represent and grow this amazing brand.”
Under this agreement, NGS secures a 3-year exclusive licence for all Healthy Chef intellectual property within the United States and Canada. This allows NGS to manufacture, distribute, and sublicense the popular health and wellness products, significantly expanding their market reach. This partnership also aligns with the shared values of nutrition, quality and market expansion. NGS with its established distribution channels in North America, stands to benefit from integrating The Healthy Chef brand to diversify its product range catering to a whole new demographic of clientele.
For THC, it is an opportunity to leverage the expertise and well established network to catalyse their entry to a totally new market.
In April 2024, NGS undertook a capital raise totaling $2.0 million, which included $0.475 million through a Loan Notes Placement and $1.525 million through a Share Placement. These funds were raised to better their marketing efforts, increase production capacity, and enhance distribution beyond Walmart.
The Happy Tummies products are now available in 900 stores, alongside Healthy Heights in 1300 stores with an increase of 3% in-store sales from the previous quarter.
Stephen Turner, NGS CEO and Managing Director, commented on the capital raise: “We are appreciative of the support from existing and new investors, who have participated in the Capital Raise.
“This substantial injection of capital will provide balance sheet flexibility and working capital to accelerate growth in the USA and increase production to expand our retail footprint beyond Walmart. It also allows for development and expansion in branded product offering through our strong USA retail channel understanding and expertise.
“The increased scale will bring significant cost efficiencies in procurement and operations, fast-tracking our path to sustained positive cash flow and profitability.”
For the March 2024 quarter, NGS reported USD $581,000 in cash receipts which represented a 13% increase to the prior corresponding period. This resulted in a $278,000 negative operating cash flow for the quarter.
As of 31 March 2024, the Company had USD $72,000 of cash on hand.
Sidra is a Business Writer with The Sentiment
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1 Comment
Shraddha13
Thank you for sharing! To explore further
Replyhttps://www.360iresearch.com/library/intelligence/nutritional-supplements