ASX listed health and wellness company, Jatcorp, reported a 25 per cent jump in ongoing operations revenue for Q1 FY25, but also logged a statutory revenue decline of 42 per cent as the business completed a strategic pivot.
Jatcorp records solid 1Q25
ASX listed health and wellness company, Jatcorp, reported a 25 per cent jump in ongoing operations revenue for Q1 FY25, but also logged a statutory revenue decline of 42 per cent as the business completed a strategic pivot.
The company is implementing a new growth strategy that has landed four consecutive quarters of positive operating cash flow and profitability from continuing operations (subject to audit).
Snapshot
Revenue from ongoing operations: up 25% to $12.2m (excluding discontinued operations);
Statutory revenue: down 42% on prior corresponding period (pcp) to $12.2m;
Gross profit: $5.17m, up 50% on pcp;
Net profit: $1.63m, up $1.44m on pcp;
Underlying EBITDA: $2.41m (excluding legal costs), up 119% pcp; and
Net operating cash flow: $0.44m, up $0.57m pcp.
Jatcorp CEO, Sunny Jian Xin Liang, said the drop in statutory revenue was because of the discontinuation of the low-margin trading business while the company honed its focus on self-branded products, new products, channels and markets, and operational efficiencies.
The performance reflected “continued investments in sales and marketing, heightened demand for lactoferrin-based products in China, and ongoing improvements to the company’s manufacturing efficiencies”.
“We’ve had a strong start to the new financial year delivering solid Q1 revenue and gross profit through expanding our omnichannel presence, increasing production capacity, and strengthening our partnerships.
“This performance highlights our ability to consistently deliver on our strategy, even during the retail off-season of our largest market, China,” Liang said.
He said, Jatcorp’s core brands, Neurio and Moroka, and its Victorian-based manufacturing facility, ANMA, all contributed strongly to revenue growth in Q1 FY25, reflecting the business’ diverse revenue streams and the success of its ongoing engagement across multiple product lines.
“We continue to invest in advancing operations at our ANMA facility and increasing production capacity to meet the rising consumer demand for functional health products and deliver the additional product required to service our growth strategy,” Liang said.
In the quarter, the company launched two new Moroka branded products, opened three e-commerce stores on online marketplaces in China, and expanded its sales team
“With our expanded team and growing presence across digital and physical channels, we are well placed to accelerate growth and maximise our impact in the Asia-Pacific and beyond.
“We remain focused on executing our long-term strategy, refining our product portfolio, and leveraging our omnichannel capabilities to drive sustained value for both consumers and shareholders,” he said.
During the quarter, Jatcorp installed a new sachet production line at its Melbourne facility to better meet market demand, support new market entries, and strengthen partnerships with its OEM clients.
The plant has two main production lines. The tub/tin line runs at approximately 60 per cent capacity and the sachet line at full capacity. The newly installed production line is undergoing testing and is expected to be operational by Q2 FY25.
