Australia’s burgeoning beauty, health and wellness markets present a lucrative opportunity for businesses like Anagenics. Over the years Anagenics (ASX: AN1) have evolved from their biotech roots into a dynamic beauty, health and wellness company. In spite of economic challenges that have elicited mindful spending, Australians continue to prioritise self care, with the nation running 10th globally in wellness expenditure.
Without a doubt, rising costs have shifted consumer behaviour – but the beauty and wellness industry has not been without its bright spots. Anagenics reported a 16% increase in revenue, totaling $10.8 million for the financial year ending June 30, 2024.
By focusing on its core competencies and strategic partnerships, the Company has streamlined its product portfolio, aiming to facilitate working capital management and profitability. Moreover, with the early completion of royalty agreements with Advangen Japan and Roquert Therapeutics, Anagenics is exploring further opportunities to monetise their intellectual property.
According to a survey conducted in 2023, 41% of Australians are prioritising personal care, investing an average of $431 per month on treatments like Botox, fillers, hair appointments, and nail care, with a staggering $19.7 billion spent annually.
The Company has also won a multi-year exclusive agreement with York Street Brands (YSB), which will integrate its advanced hair regrowth technology into YSB’s popular BOOST LAB and tbh Skincare brands. This collaboration will see Anagenics’ technology feature in over 2,000 Australian retail outlets. Key financial terms include upfront payments totaling $0.3 million and royalties exceeding $4.4 million over the initial 10-year term. Anagenics retains rights to its existing hair regrowth brands, ensuring strategic flexibility.
The Company achieved a $0.7 million increase in operating cash flow during the June quarter 2024 compared to pcp, reflecting an uptick in operational efficiency. Additionally, Anagenics reduced liabilities by $0.5 million since December 31 2023, maintaining a cash balance of $1.6 million as of June 30, 2024.
While the company has achieved improved cash flow and revenue growth, it anticipates significant non-cash impairment charges related to intangibles and inventory in its upcoming FY24 annual report.
AN1 shares reached a high of $0.009 in early morning trade, which was a 12.5% increase on the previous $0.008 close price.
Sidra is a Business Writer with The Sentiment
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