REG - Wellnex Life Limited - Q3 FY26 Quarterly Update and Appendix 4C
30/04/2026 07:30
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RNS Number : 5696C Wellnex Life Limited 30 April 2026
ASX/AIM Announcement
30 April 2026
Quarterly Update and Appendix 4C - March 2026
HIGHLIGHTS
• Milestone quarter Wellnex Life achieved its first quarter of
positive operating cash flow since the current turnaround strategy commenced,
marking a significant inflection point in the Company's ongoing progression
• Customer cash receipts increased 30.8% to $6.67 million (Q2 FY26:
$5.10 million), reflecting strong commercial momentum and improved working
capital conversion across the Company's brand portfolio
• Operating cash flow moved to positive $0.41 million (Q2 FY26:
outflow of $0.16 million), a quarter-on-quarter improvement of $0.57 million
driven by disciplined cost management
• Staff costs declined 29% quarter-on-quarter to $0.75 million (Q2
FY26: $1.06 million), reflecting the tangible and structural benefits of the
Company's ongoing cost reduction programme
• Cost reduction strategy continued across advertising and marketing
(down to $0.54 million from $0.62 million in the prior quarter) and
administration, demonstrating broad-based operational efficiency gains
• The Board remains firmly focused on delivering Q4 FY26 with
revenue growth, margin improvement and cash generation as its core priorities
Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex Life" or the "Company") is
pleased to provide its quarterly operational and business update together with
its Appendix 4C for the quarter ended 31 March 2026 (all figures unaudited).
The March 2026 quarter represents a defining moment in Wellnex Life's
turnaround, with the Company returning to positive operating cash flow for the
first time since the current management team's strategy was implemented.
Momentum accelerates
Customer cash receipts for Q3 FY26 improved to $6.67 million, representing a
30.8% increase on the $5.10 million recorded in Q2 FY26. This strong uplift
reflects genuine commercial momentum across Wellnex Life's core brand
portfolio, including Pain Away, Wakey Wakey and Nighty Night, as well as
continued improvement in the Company's working capital cycle and cash
conversion. Year-to-date customer receipts stand at $16.31 million.
Revenue in Q3 FY26 declined compared to Q2 FY26 due, in part, to the cyclical
nature of IP licensing as well as reduced investment, in the short term, in
the Company's non-core brands, in particular marketing and advertising.
Notwithstanding this, the Company is targeting stronger revenue growth in Q4
FY26, benefiting from more focussed marketing effort and typically higher
activity across the business in Q4.
Revenue Q3 FY26 Q2 FY26 % Change
Brands $3.5 million $3.8 million -7.9%
IP Licensing $1.6 million $3.3 million -51.5%
Total $5.1 million $7.1 million -28.2%
Gross Profit $1.5 million $2.1 million -28.6%
Operating cash flow turns positive
The Company delivered net operating cash flow of positive $0.41 million in Q3
FY26, compared to an outflow of $0.16 million in Q2 FY26 - a
quarter-on-quarter improvement of $0.57 million. This positive result reflects
the combined impact of accelerating customer receipts and the sustained cost
discipline implemented across the organisation throughout FY26. The
achievement of positive operating cash flow is a key milestone in the
Company's turnaround and validates the strategy being executed by the Board
and management team.
Structural cost reductions deliver results
The benefits of the Company's cost reduction programme are clearly evident in
Q3 FY26results. Staff costs declined sharply to $0.75 million, down 29% from
$1.06 million in Q2 FY26, reflecting a leaner, more efficient organisational
structure. Advertising and marketing expenditure reduced to $0.54 million from
$0.62 million, albeit with a short-term impact on revenue, while
administration and corporate costs also declined. Product manufacturing and
operating costs increased to $3.60 million (Q2 FY26: $2.51 million),
consistent with the sales volumes recorded during the quarter and ongoing
investment in supporting the Company's core product lines.
Related party payments
Payments of $0.32 million were made to related parties during the quarter.
These payments relate to directors' fees, executive remuneration and
associated costs incurred in the ordinary course of business.
Outlook
The Board enters Q4 FY26 with confidence, building on the positive operating
cash flow result and a targeted revenue trajectory in Q4 FY26. Management's
focus for the final quarter of FY26, and beyond, is on sustaining revenue
growth, continuing to improve gross margins through the Company's owned-brand
strategy, and further strengthening the balance sheet. The Company believes it
is well-positioned to deliver a strong finish to FY26 and to build on the
turnaround foundations established during the year.
This ASX/AIM announcement has been authorised by the Board of Wellnex Life
Limited (ASX/AIM:WNX).
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.
--- END ---
For further information, please contact:
Wellnex Life Limited (ASX/AIM:WNX)
Eric Jiang
Interim Executive
Chairman
E: eric.j@wellnexlife.com.au (mailto:eric.j@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
To learn more, please visit: https://wellnexlife.com.au/
(https://wellnexlife.com.au/)
Appendix 4C
Quarterly cash flow report for entities
subject to Listing Rule 4.7B
Name of entity
WELLNEX LIFE LIMITED
ABN Quarter ended ("current quarter")
77 150 759 363 31 March 2026
Consolidated statement of cash flows Current quarter $A'000 Year to date
(9 months)
$A'000
1. Cash flows from operating activities 6,672 16,309
1.1 Receipts from customers
1.2 Payments for (35) (295)
(a) research and development
(b) product manufacturing and operating costs (3,599) (10,696)
(c) advertising and marketing (539) (1,967)
(d) leased assets
(e) staff costs (745) (2,689)
(f) administration and corporate costs (532) (1,800)
1.3 Dividends received (see note 3) - -
1.4 Interest received 0 0
1.5 Interest and other costs of finance paid (431) (781)
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other (GST refund/(paid)) (379) (811)
1.9 Net cash from / (used in) operating activities 412 (2,730)
2. Cash flows from investing activities - -
2.1 Payments to acquire or for:
(a) entities
(b) businesses
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property -
(f) other non-current assets - -
2.2 Proceeds from disposal of: - -
(a) entities
(b) businesses - -
(c) property, plant and equipment - -
(d) investments - -
(e) intellectual property - -
(f) other non-current assets - -
2.3 Loan repayment from other entity - -
2.4 Dividends received (see note 3) - -
2.5 Other (cash acquired from CBDG Administration) -
2.6 Net cash from / (used in) investing activities - -
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt 22 (1,128)
securities
3.5 Proceeds from borrowings 3,295 14,972
3.6 Repayment of borrowings (4,311) (11,218)
3.7 Transaction costs related to loans and borrowings (176) (176)
3.8 Share applications to be refunded - -
3.9 Other (repayment of lease liabilities) - -
3.10 Net cash from / (used in) financing activities (1,170) 2,450
4. Net increase / (decrease) in cash and cash equivalents for the period 975 497
4.1 Cash and cash equivalents at beginning of period
4.2 Net cash from / (used in) operating activities (item 1.9 above) 412 (2,730)
4.3 Net cash from / (used in) investing activities (item 2.6 above)
4.4 Net cash from / (used in) financing activities (item 3.10 above) (1,170) 2,450
4.5 Effect of movement in exchange rates on cash held - (1)
4.6 Cash and cash equivalents at end of period 217 217
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 217 975
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (funds held in trust) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 217 975
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 317
in item 1
6.2 Aggregate amount of payments to related parties and their associates included
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities 9,250 (6,103)
7.2 Credit standby arrangements - -
7.3 Other (Director's loan) 2,525 (2,525)
7.4 Total financing facilities 11,775 (8,628)
7.5 Unused financing facilities available at quarter end 3,147
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
1.
Sec
ure
d
Rev
olv
ing
Tra
de
and
Deb
tor
Fac
ili
ty
wit
h
Sco
tti
sh
Pac
ifi
c
of
$3.
8
mil
lio
n
Int
ere
st
Rat
e:
BBS
Y
plu
s
6.8
%.
2.
Sec
ure
d
loa
n
fac
ili
ty
wit
h
Rea
ch
Who
les
ale
of
up
to
$5.
35
mil
lio
n
at
14%
per
ann
um
exp
iri
ng
Aug
ust
202
7.
The
amo
unt
sho
wn
in
Sec
tio
n 7
is
for
the
ful
l
amo
unt
dra
wn
dow
n
($5
.35
mil
lio
n)
at
the
clo
se
of
the
per
iod
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) 412
8.2 Cash and cash equivalents at quarter end (item 4.6) 217
8.3 Unused finance facilities available at quarter end (item 7.5) 3,147
8.4 Total available funding (item 8.2 + item 8.3) 3,363
8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) N/A
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
ne
t
op
er
at
in
g
ca
sh
fl
ow
s
in
it
em
1
.9
,
an
sw
er
it
em
8
.5
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8
.5
.
8.6 If item 8.5 is less than 2 quarters, please provide answers to the following
questions:
8.6.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
8.6.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
8.6.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2
and 8.6.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with
accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
30
April 2026
Date:
...................................................................................
The
Board of Directors
Authorised by:
...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 107: Statement of Cash Flows apply to this report. If this
quarterly cash flow report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standard applies to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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