What’s fuelling growth of Holista Colltech’s (ASX:HCT) cash cow Dietary Supplements Division? 

Image Source: HCT Website

Highlights

  • Holista Colltech has delivered a strong first half, with its four divisions performing well. 
  • The Dietary Supplements division has proven to be a cash cow for the Group, contributing 70% of total revenue for 1H.
  • Further growth expected for this division through organic growth (global supplement market expected to expand at an 8.6% CAGR during 2021-2028) and new product launches. 

Holista Colltech Limited (ASX:HCT) is making a slew of significant developments in the quest to expand its footprint in the health and wellness space. The Company’s excellent performance in the six months ended 30 June 2021 reflects how well the business is positioned to tap the opportunities in the rapidly growing global wellness market.  

The natural wellness company has a global reach with customers in Asia, Australia and the US. It is backed by a successfully commercialised portfolio of patent-protected/proprietary technologies.

ALSO READ: Holista Colltech (ASX:HCT): A powerhouse of unique health and wellness products

The Company delivered a good turnaround in revenue and profit in 1H, bolstered by the strong performance of its four divisions. Meanwhile, the Dietary Supplements division remained the Group’s most significant revenue contributor, accounting for 70% of the total revenue for the reported period. 

RELATED ARTICLE: Holista Colltech (ASX:HCT) clocks robust sales revenue across all divisions in 1H

Source: HCT update, dated 27 August 2021

With this backdrop, let us dive deep to explore Holista’s Dietary Supplements division and associated undertakings and performance. 

ALSO READ: Meet the leadership team behind Holista Colltech’s (ASX:HCT) terrific progress

What does Dietary Supplements division offer?

This segment markets and sells a range of different propriety supplements through its wholly owned subsidiaries.

The Pristin® MOPL™ product contains third-generation Omega-3 and is clinically proven to have a significantly higher nutrient absorption rate than most products available in the market. It helps in boosting cognitive performance and improves overall functions of the heart, skin, liver, lungs, and kidneys.

Holista also supplies raw materials to multi-level marketing companies.

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What’s behind Dietary Supplements’ solid performance?

The Dietary Supplements division registered an increase of AU$57,000 in sales to AU$2.5 million in 1H, with the easing of COVID-19 disruptions positively impacting Holista’s sales channels and supply chains.

At a time when consumer awareness as well as demand for vitamins continue to grow amidst the focus to boost immunity and overall health during the pandemic, the division successfully cashed in on the market-leading brands, including LACTO-5® and Pristin®. 

RELATED ARTICLE: How Holista Colltech (ASX:HCT) is maximising growth drivers in the health & wellness industry

Outlook

Holista, being one of the most significant supplement suppliers in Malaysia, is well poised to tap the opportunities from the growing global market for health supplements. As per reports, the global supplements market is expected to grow at an 8.6% CAGR from 2021-2028. 

Meanwhile, the outlook for the Company’s Dietary Supplements division is anticipated to be driven by organic growth and a strong market position.

What’s more, the new dietary supplement water-soluble vitamin D and the launch of nasal balm in pharmacy stalls in Malaysia and online platforms are expected to catalyse the division’s growth.

All in all, the Dietary Supplements division, a significant cash generator for Holista, seems to be in rude health to build on the growth momentum, backed by the rollout of new products and easing of COVID-19 disruptions.  

HCT traded at AU$0.058 on 9 September 2021.


 


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