Global paedeatric nutrition company Nutritional Growth Solutions (ASX: NGS) are doing just that- growing.
The Company creates a proprietary line of supplements scientifically formulated to enhance and support growth in children that has expanded significantly both in range and distribution locales.
The clinically proven supplement range was formulated based on research into paediatric nutrition at Israel’s largest paediatric hospital. NGS’ ‘Healthy Height’ range is clinically proven to increase growth in 3 to 9 year old children by 13% – 34%.
Prior to NGS, there have been no sufficiently studied supplement options available for healthy, short and lean children who do not meet the criteria for growth hormone therapy.
December proved particularly successful for the Company which reported record revenue and cash receipts, spurred by positive feedback from their US launch and 300% increase in sales on the Company’s Tmall flagship store in China.
Quarterly cash receipts came in at a 36% increase on the prior corresponding period to USD $640k, with revenue just behind at USD $570k, a 38% increase.
A significant market, the US represents a key opportunity for the Company which will commence its retail expansion strategy this year. This includes a brand awareness campaign as well as the approval to sell the product on Walmart.com and RangeMe.com, two large retailers that will increase the reach of the brand. Walmart’s website received over 100 million unique visitors every month where NGS’ Healthy Heights Grow Daily 3+ single serve shake mixes will now be available. The complete Healthy Heights range will be made available on the RangeMe site, a platform used by over 10,000 major retailers such as Wholefoods, CVS Pharmacy, Target and 7- Eleven.
With an insatiable appetite for growth (see what I did there?) the Company is also planning to launch their products closer to home, continuing to progress with the manufacturing of products in New Zealand for the Asia Pacific region. Products are expected to come on line by the end of Q1 2022. Distribution in the region will be led by Australia Sunshine International Group which will see the Healthy Heights shake stocked in a variety of stores and eCommerce platforms such as JD.com (NASDAQ:JD), one of China’s largest online retailers by transaction volume and revenue.
Additionally, Ultrahealth Group will distribute the shakes on Kaola and Little Red Book, two more significant e-commerce platforms.
And there’s more..*insert another bad pun about growth here*. The Company is developing new products to add to their line including their Kidz Protein dairy-based and plant-based shake ranges, new Grow Daily 3+ nutrition bars and Ready-to-Drink Grow Daily 3+. Products are expected in Q2.
“The quarter has been focused on the manufacturing of our Healthy Heights products in New Zealand and ensuring the first production run is on time and available to fulfil out new distribution arrangements in Asia Pacific,” said Liron Fendell, Company CEO.
“The Ultrahealth and Australia Sunshine agreements signed this quarter symbolise a milestone in our growth strategy as we enter South East Asia and expand our footprint in China. We are in a strong position to reach our growth objectives with additional markets planned to launch Healthy Heights in 2022.”
The Company reported a cash balance of USD $4.1 million as at 31 December 2021.
Samantha Freidin is a business journalist at Emerald Financial whilst also completing a Masters of Marketing and Digital Communications at Monash University.
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