Despite evolving lifestyles encouraging more thoughtful financial choices, Australians remain committed to investing in premium beauty, health, and wellness products. The nation claims the 10th spot globally with US$84 billion spent on wellness items, while the national revenue in the Beauty & Personal Care market amounts to US$7.22 billion in 2023. Amidst economic challenges, Anagenics (ASX: AN1) still managed to deliver promising results.

In Q1 FY24, the health and beauty tech company recorded total revenue of $2.2 million, down from $2.6 million in Q1 FY23, but remaining on par with revenue in Q4 FY23. 

In comparison to the previous corresponding period (pcp), staff expenses were reduced by 11% to $0.4m which was a result of cost saving initiatives made over the year. Anagenics managed to suppress Group net operating cash outflows in Q1 FY24 to $0.7m compared to $0.9m outflows on pcp, which led to an improvement in the overall Group cash position of 22%.

This brings its cash balance from $2.56m on open to $1.79m at the end of the quarter.

In addition, Anagenics has completed the acquisition of e-commerce marketplace and small retail business Face MediGroup, which was also its longtime customer. The acquisition is set to complement BLC Cosmetics by giving Anagenics a holistic omni retail and wholesale distribution network across Australia and New Zealand’s professional beauty market. 

The Company remains positive that from Q2 FY24, the acquisition will provide additional scale and business synergies to improve its cash flow. The management continues to prioritise the M&A growth strategy by identifying more potential acquisitions to expand scale and achieve sustainable profitability.

Across its operational performances, Anagenics noticed impressive customer sales performance from its subsidiary, BLC Cosmetics, an importer of international and local skin care and wellbeing brands. Its B2B wholesale channel in New Zealand grew almost 80% from the prior quarter to hit $0.1m, while net sales were up 43% on pcp. 

Direct to consumer sales (D2C) equalled $0.2m in the current quarter as the Company continues to invest in website technology designed to grow this segment. 

Anagenics (then under trading name Cellmid (ASX: CDY), completed the BLC Acquisition in November 2021 for $3 million ($1 million in cash and issuance of of 32,786,885 shares at 6.1 cents each, representing $2 million or 15% of the Company’s capital post issue).

Apart from Face MediGroup and BLC Cosmetics, Anagenics manages a range of brands in their portfolio, which includes anti-ageing hair care évolis, as well as Uspa, offering products for skincare, haircare, and body care.