What’s behind Holista Colltech’s (ASX:HCT) bullish FY22 outlook in this volatile market?

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What’s behind Holista Colltech’s (ASX:HCT) bullish FY22 outlook in this volatile market?

Holista’s outlook for FY22
Image source: © Tebastien | Megapixl.com

Highlights

  • Holista Colltech kicked off FY22 with record sales receipts in the March 2022 quarter.
  • Numerous growth drivers are expected to lead Holista towards higher sales in the coming quarters.
  • In FY22, HCT plans to launch new products in its rich portfolio of health & wellness solutions.
  • The Company is preparing ecommerce platform for product rollout into various markets in 2H.

With the best of nature and science, Holista Colltech Limited (ASX:HCT) is dedicatedly working to address changing needs of the people, offering them a range of health and food related solutions for healthier lives. The ASX-listed company has been deepening its footprint in the industry by successfully developing some world-leading technologies in the field of global health & wellness.

Management believes the outlook for 2022 is bright and its optimism is backed by its substantial gains in the first quarter of the year (Q1FY22).

Source: Company website
 

The company clocked record quarterly sales receipts of AU$2.4 million in the March 2022 quarter, around 34% higher over the previous comparable period (pcp). The figure also reflects a 17% quarter-on-quarter increase.

The growth was driven by robust performance across all four core business divisions - Dietary Supplements (up 31%), Healthy Food Ingredients (up 79%), Ovine Collagen (up 64%), and Infection Control Solutions (up 164%).

ALSO READ: Holista’s all-natural disinfectant kills 99.99% of human coronavirus strain, confirms test

Positive tailwinds persist to lift 2022 goals

Besides a power-packed March quarter, Holista’s confidence in the positive FY22 (its financial year end is 31 December) outlook is built on varied growth avenues, such as new product launches and higher potential sales across its various markets. The company made significant investment in building inventory of raw materials during 1Q, aimed at meeting strong forward customer orders as well as managing inflation and supply chain risks.

Below are some of the factors for Holista’s strong outlook:

  • Holista has sealed its first commercial order for its GI LiteTM innovation from Starbucks Malaysia and 80LessTM from Country Farms. The company is in talks for a long-term agreement.
  • The company plans to launch a natural sugar and starch blocker, called In2Bloc, in 2Q, which would bolster sales of its Health Supplements division.
  • The second half of the year will register introduction of several innovations to its portfolio of patent protected products from the Supplements and Infection Control divisions. It is expected to further scale up the sales of the segments.
  • Since the COVID-pandemic, the world has been lot more conscious about health, wellness, and sanitation. Also, there has been a rise in inclination and preference for online shopping. Holista is leveraged to these trends, which will enable it to meet its short- and long-term business goals.

HCT shares last traded at AU$0.029 on 13 May 2022, with market capitalisation of AU$7.98 million.

ALSO READ: Holista Colltech scores big, signs initial order for Starbucks and Country Farms

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