REG - Wellnex Life Limited - Chairman’s letter - Shareholder Update

Wellnex LifeAnnouncement

20/10/2025 07:00

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RNS Number : 0006E  Wellnex Life Limited  20 October 2025

 

 

 

ASX/AIM
Announcement
20 October 2025

 

 

 

 

Wellnex Life Limited (ASX/AIM:WNX) ("Wellnex Life" or the "Company") announces
that Executive Chairman, Ash Vesali, is today providing the following update
to shareholders, and has separately announced the Company's Q1 FY26 Quarterly
Report and Appendix 4C (unaudited).

 

 

 

Dear Shareholder

 

I am writing to you following my first few weeks in the role of Executive
Chairman to update you on our progress so far and provide more information
around our plans.

 

I am acutely aware of the recent share price performance and since joining
Wellnex, my primary focus has been on putting a framework in place that can
deliver shareholder value through profitable growth. This letter outlines this
framework and the specific actions underway to achieve these objectives.

 

Focus on Core Assets with 2-Pillar Strategy

Our business is now structured around two distinct value creation pillars.

 

Pillar 1: Pain Away

Our first pillar focuses on acting as a brand accelerator for acquired
consumer health brands. Today, that priority is to drive continued growth of
Pain Away, our category-leading brand with strong momentum and further
capacity for the domestic market and significant potential for international
expansion.

 

Pillar 2: Contract Manufacturing

Our second pillar is the continued expansion of our contract manufacturing
within the soft gel analgesics market. Wellnex holds supply agreements with
leading pharmaceutical partners, including Haleon, reinforcing our technical
credibility and recurring revenue base which should improve cash flow.

 

Deprioritising Non-Core Assets

As we reshape our operating model and our structure, we have taken decisive
steps to complete an assessment of our product portfolio. Based on this review
across the range, we are consolidating some of our underperforming brands. We
will continue to supply those brands in line with our customer commitments
until they are sold or we enter into a discontinuation agreement. We will
cease all investments in these areas thereafter.

 

 

 

Operational Review within Contract Manufacturing

In parallel, we have assessed our contract manufacturing operations. We intend
to leverage our order history, past commitments, and recurring patterns to
implement more rigorous forecasting. This will better position the business
for sustainable performance and better control of our quarterly P&L.

 

A keen focus on Costs, Capital Management and Management Framework

Aligned with our refined strategic focus, Wellnex is transitioning to a
leaner, more agile operating model and a management framework enabling
efficient decision-making and disciplined capital management.

 

A targeted cost reduction programme has been initiated and will be planned to
deliver over $1 million in annualised savings.

 

A portion of these savings will be realised during FY26 with the full run rate
benefit expected thereafter. The programme will strengthen our margin profile
and position the business to deliver sustained positive cashflow and profit
within the near future term.

 

Looking Forward

Wellnex is entering a new chapter and I am excited about the journey ahead. I
can assure you that the Board's focus is firmly on execution of this strategy
and delivering measurable financial results.

 

I see it as my responsibility to ensure we build investor confidence and
deliver value, and I look forward to updating you as we execute this plan.

 

Thank you for your continued support.

 

 

 

Ash Vesali

 

Executive Chairman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This ASX/AIM announcement has been authorised by the Board of Wellnex Life
Limited (ASX/AIM:WNX).

For further information, please contact:

 

Wellnex Life Limited (ASX:WNX)
Reach Markets

Zack
Bozinovski
                         T: 1300 805 941

Chief Executive Officer & Managing Director
                                         E:
IR@reachmarkets.com.au

P: +61 3 8399 9419

E: zack.b@wellnexlife.com.au

 

UK Investors

Strand Hanson (Financial & Nominated Advisor)

James Harris / Richard Johnson      Tel: +44 (0) 20 7409 3494

 

Orana Corporate LLP (Joint
Broker)                            swykeham@oranacorp.com
(mailto:swykeham@oranacorp.com)

Sebastian Wykeham

 

S.P. Angel Corporate Finance LLP (Joint Broker)        Tel: +44 (0)20
3470 0470

David Hignell / Vadim Alexandre

 

The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

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