Wattle Health Australia Limited (ASX: WHA) provides high-quality health and wellness products to its customers. The company uses organic ingredients to produce organic and sustainable products with the highest possible standards of purity. Today (i.e., 4 February 2019), the company’s shares are up by 3.141 percent on ASX. However, in the last 12 months, the company’s shares have lost almost 60% of their value by declining from $2.415 on 1 February 2018 to $0.955 as on 1 February 2019.
The company recently launched its Uganic brand which will be distributed through both existing and new channels domestically and internationally starting from April 2019. To secure this brand, the company has already paid around $3.4 million. As per the announcement, the company is in final negotiations with major retailers in Australia for the distribution of the Uganic brand across their extensive retail network.
In Q2 FY19, the company’s sales were impacted due to the cessation of conventional nutritional dairy products in preparation for the conversion to organic nutritional products with the launch of Uganic. The company is expecting strong growth of sales for the remainder of the CY 2019 with the launch of Uganic and the continued growth of distribution of the company’s Australian natural baby food and Little Innoscents. At the end of Q2 FY2019, the company had a strong balance sheet with nil debt and cash holdings of circa $42.2 million and stock on hand of around $3.7 million.
Recently on 16 January 2019, the company announced the appointment of Mr. Zheng (Kobe) Li to the Company’s Board as an independent non-executive director with immediate effect. As per the company’s announcement, the appointment of Kobe as an independent non-executive director follows best practice with the majority of the board being independent, continuing and improving the corporate governance of the company.
In September 2018, the company secured contracted sales of its Australian natural baby food range for around $3.75 million and its currently developing Indian specific packaging with the first shipment under this contract planned for the current quarter. In August 2018, the company announced that it has received formal approval of its Australian natural baby food range. During Q2 FY19, the company cleared and sold an initial order of baby food in the Chinse market and subsequent to this order have signed an additional eight distributors in China for distribution of WHA’s Australian natural baby food range.
In FY 2018, the company reported revenue of $1,575,000. Further, the company incurred a total comprehensive loss of $19,839,000 with basic and diluted loss per share of 13.32 cents. In 2018, the company diversified its brand offering. In February 2018, the company grew its product portfolio through the acquisition of organic skincare company Little Innoscents, one of Australia’s first certified organic baby skin care providers.
In the past six months, the share price of the company decreased by 32.98 percent as on 1 February 2019. WHA’s shares traded at $0.985 with a market capitalization of circa $185.75 million (4 February 2019, AEST 2:09 PM).
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