Nuchev (ASX: $NUC) Quarterly Activity Report Highlights

Nuchev Limited (ASX: $NUC) has reported a year-to-date revenue of $8.5m from Oli6® branded sales, with $1.8m for the third quarter of FY24, in line with the previous corresponding period. The company's China CBEC also saw significant growth, with year-to-date revenue from Oli6 branded sales reaching $5.1m, marking a 100% increase from the previous corresponding period. Additionally, the Australian market experienced a 16% year-to-date revenue growth from Oli6® branded sales, amounting to $3.5m, with $1.1m for the quarter, reflecting a 10% increase from the previous corresponding period. Nuchev is on track to further expand its portfolio before the end of FY24.

Executive Commentary on Nuchev's Performance and Future Outlook

It is pleasing to report we continue to maintain momentum and reap the rewards of the recent changes made within the business. With growth in retail sales across both our Australian Pharmacy and Grocery channels, combined with a significant increase in our sales in China, this has delivered an uplift of nearly 40% on the previous 12 months. We are confident and excited by the opportunities ahead and are pursuing rapid organic growth, augmented by the launch of innovative new products that are compelling offerings for our channel partners and that deliver nutritional and immunity benefits to our consumers. In FY24 we have successfully launched Oli6® Immunity+, generating $0.4m of new sales to date, with further growth and new launches expected. We continue to take an active approach to optimizing our inventory levels, enabling us to manage our working capital and operations more effectively. We are actively pursuing growth opportunities in both existing and new markets, whilst remaining cost-conscious, disciplined and focused on building shareholder value.

Summary of Nuchev's Quarterly Performance and Future Plans

Nuchev's quarterly report reflects a strong performance, with significant revenue growth in both the Australian and Chinese markets. The company's focus on inventory and working capital management has resulted in a 40% reduction in inventory holdings over the last twelve months, contributing to a closing cash position of $4.9m at the end of March 2024. Nuchev is actively pursuing new business opportunities aligned with the goal of scaling the business, expanding its portfolio offering, and moving towards positive cash flows. The successful launch of Oli6® Immunity+ and the anticipation of further growth and new product launches demonstrate the company's commitment to innovation and meeting consumer needs. With a robust and flexible balance sheet, Nuchev is well-positioned to fund its operating activities for the foreseeable future, indicating a positive outlook for the company's continued growth and value creation.