Anagenics Limited (ASX: $AN1) has reported its financial results for the half-year ended 31 December 2023. The company's revenue and other income from continuing operations increased by 13.6% to $6,344,390 compared to the previous corresponding period. The net loss after tax for the consolidated entity was $1,951,256, which included an impairment on the deferred consideration receivable relating to former subsidiary Advangen Japan. The underlying EBITDA, excluding one-off business restructuring costs and other abnormal items, was a loss of $1,070,081.
The financial performance from the continuing operations reflects the impact of the acquisition of FaceMedi Group (FMG) and the decline in volumes from the Advangen business in Australia and China. The company's strategy is to concentrate on growing online revenue via the direct-to-consumer channel across all brands in Australia and New Zealand. We have invested in a portfolio of brands and are expanding scale under a merger and acquisition strategy. The integration of FMG acquisition is expected to drive profitability in the second half of F24. We have also implemented business restructuring and process improvement initiatives to support profit, including investing in more inventory, redeployment and redundancies, closure and transfer of warehouse operations to an independent third-party logistics (3PL), and investment in a new online trading platform. These initiatives are estimated to result in annualized cost savings of $1.3M per annum. Additionally, we have reset the cost base for Group support functions, primarily in the area of occupancy, legal, professional, and director officer insurance.
Anagenics Limited's financial results for the half-year ended 31 December 2023 reflect the impact of the acquisition of FMG and the decline in volumes from the Advangen business. The company's focus on growing online revenue via the direct-to-consumer channel and business restructuring initiatives are expected to drive profitability in the future. The company is well progressed in discussions with several potential targets for earnings accretive acquisition opportunities. The successful completion of a two-tranche placement of new fully paid ordinary shares to raise approximately $1.3M will support the Group's working capital requirements as part of business integration and cost-out initiatives under restructuring strategies. The company aims to continue exploring similar acquisitions to invest and scale the business further.