Wellnex Life (AIM:WNX), the consumer healthcare and contract manufacturing group, cut its net loss by 70.8% to A$4.5 million in the year ended 30 June, down from A$15.6 million in FY25.
Revenue rose 5.1% to A$24.8 million, up from A$23.6 million, driven primarily by the company's owned brands.
Gross margin improved to 30.2% from 29% a year earlier, while the EBITDA loss narrowed from approximately A$12.1 million to A$1.7 million.
"The financial results demonstrate that the actions taken during the year to simplify the business, improve operating discipline and reduce the Company's cost base are beginning to deliver tangible results," said Eric Jiang, Interim Executive Chair.
The improvement follows a strategic turnaround programme launched during the year targeting a leaner operating model and more than A$1 million in annualised cost savings.
Net assets fell 33.7% to A$7.5 million from A$11.2 million a year earlier, and the audit report flags a material uncertainty over going concern.
Subsequent to year end, Wellnex agreed to divest its Pain Away business for upfront consideration of A$19.8 million plus earn-out consideration of up to A$1.5 million.
The proceeds are expected to repay debt and strengthen the balance sheet, subject to shareholder approval at an extraordinary general meeting on 8 September.
News Intelligence what this means for the company
Wellnex Life cut its net loss by 71% to A$4.5 million in FY26 while growing revenue 5.1% to A$24.8 million, signalling early traction from its turnaround programme. The company has agreed to sell its Pain Away brand for up to A$21.3 million, with proceeds earmarked to eliminate debt and shore up a balance sheet that has deteriorated sharply—net assets fell 34% to A$7.5 million—though an auditor's going-concern flag remains a material risk until the sale closes.
The loss narrowing and margin improvement suggest cost discipline is working, but the 34% drop in net assets and going-concern warning mean the Pain Away sale is now existential to solvency rather than opportunistic. Success hinges on deal completion (subject to shareholder vote on 8 September) and whether retained operations can sustain the revenue and margin gains without the divested brand.
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