Nutritional Growth Solutions (ASX:NGS) posts record annual revenue in FY21

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Nutritional Growth Solutions (ASX:NGS) posts record annual revenue in FY21

NGS offers clinically-tested nutritional products
Image source: © Serrnovik | Megapixl.com

Highlights

  • Nutritional Growth Solutions has been making the right moves as it strengthens its foothold in the global marketplace with its clinically proven products for kids’ growth.
  • ASX-listed nutrition company made exceptional progress in FY21 in bolstering the position of Healthy Heights® as a global leader for child nutrition.
  • NGS posted record revenue of US$3.04 million in FY21 ended 31 December 2021, up by 63% on pcp.
  • NGS is planning to enter Southeast Asia and expand its presence in China via a multi-region distribution agreement signed with Australia Sunshine.

ASX-listed nutrition company, Nutritional Growth Solutions Ltd. (ASX: NGS) in the latest release, has revealed that it has delivered record revenue of US$3.04 million in the fiscal year 2021 ended 31 December 2021 (FY21). NGS made exceptional progress in FY21 in bolstering the position of Healthy Heights® as a global leader for child nutrition.

The revenue growth of 63% was attainable following its solid growth strategy that led its products and sales channels through new markets across the world. At the end of the year, the company had net assets of US$3.9 million with cash and cash equivalents of US$4.1 million, without any debt.

Nutrition that is clinically shown to help kids grow

Image source: © Iqoncept | Megapixl.com

ALSO READ: ASX-listed Nutritional Growth Solutions (ASX:NGS) gives short-stature kids higher hopes

NGS has been fortifying its foothold in the global marketplace with its clinically proven and scientifically formulated products for kids’ growth and development. With successful execution of growth strategies, NGS is making its products accessible to even more kids across the globe so that they reach their full growth potential. Let’s look at how the company progressed on the operational front in FY21.

Operational developments during FY21

In January 2021, Healthy Heights® was launched in China, via NGS’ flagship T-Mall Global store. T-Mall Global is the largest online cross-border marketplace in China recording more than half a billion transactions every month.

In March 2021, Healthy Heights® made its debut in the European market of pharmacies and health food stores across Italy. The Company managed wholesale sales of more than US$505,000 in Italy in 2021.

In August 2021, NGS raised AU$5 million through a successful Placement for brand equity building in North America and China, inventory to boost sales and fund clinical testing on new products.

NGS is set to enter Southeast Asia and expand its presence in China via a multi-region distribution agreement signed with Australia Sunshine.

Do read: Nutritional Growth Solutions reports solid Dec quarter, with key focus on the US and Asian Markets

NGS broadened its product range during the year

NGS product range under different brands

Image source: NGS Company

In May, NGS launched Grow Daily 3+ Nutrition Bars made with the same nutritional profile as the Grow Daily 3+ shake, which is clinically proven to support height and growth development in children.

Also, NGS launched Grow Daily Boys 10+, a shake formulated with a patented blend of nutrients to support the physical development of young males entering pre-teen and teenage years. The formula received positive clinical trial results showing an increase in growth in healthy, lean, and short pre-adolescent 10 to 14.5-yearold males.

NGS increasing global market reach

In August last year, NGS entered into a supply agreement with the China subsidiary of Chemist Warehouse, Australia’s largest pharmacy retailer. It also inked a distribution agreement with Australia Sunshine that will see Grow Daily 3+ on popular e-commerce platforms in Southeast Asia and China, such as JD.com (NASDAQ: JD), Lazada and Shopee, and an e-commerce channel by TikTok.

NGS also launched Healthy Heights® in Italy in FY21. It sealed a three-year distribution deal with Dicofarm, a distributor of clinically-tested products. Now, Grow Daily 3+ is available in pharmacy as well as health food stores across the country.

To market Healthy Heights® on Chinese online stores Koala and Little Red Book, NGS signed a distribution agreement with Ultrahealth Group in October.

Clinical trials for children being treated for ADHD

NGS is conducting clinical trials to test the efficacy of Grow Daily 3+ on the height and weight of children who are treated with stimulant medications for Attention Deficit Hyperactivity Syndrome (ADHD). If the trial reports positive results related to Healthy Heights® promoting growth and counteracts the negative effects of the drugs, NGS believes that there will be greater prospects for the US payers to cover Healthy Heights® alongside an ADHD diagnosis.

Speaking on the Company’s annual performance, CEO and MD, Liron Fendell said:

NGS’ positive outlook for FY22

The Company anticipates its momentum to continue in the year ahead. It will be expanding its footprint into numerous markets across Southeast Asia through production facilities based in New Zealand. With relentless efforts, NGS has doubled its SKU offering and widened its product range. The Company is aims to release new products, such as Kidz Protein vegan shake range, Kidz Protein dairy-based shake range, new Grow Daily 3+ nutrition bars and a kids’ sports shake.

The Company is undergoing the required groundwork to target a mass retail rollout in the United States through outlets such as Walmart and RangeMe. It is also aiming to multiply its distribution channels across the US, China as well as Southeast Asia.

Stock information: NGS stock closed the day’s trade at AU$0.165, up 6.45% on the ASX with a market capital of AU$18.30 million on 25 February 2022.

Interesting read: Nutritional Growth Solutions (ASX:NGS) launches Healthy Height® in Europe

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