Wellnex Life hails transformative year after agreeing Pain Away sale

Wellnex Life Ltd on Tuesday hailed a "significant" improvement in its financial performance amid a strategic turnaround effort, although operating cash outflows widened during the recent financial year.

The Melbourne, Australia-based consumer healthcare and wellness company also announced a change in chief financial officer.

Wellnex shares were untraded in London on Tuesday morning in London. They closed up 2.5% to AUD0.083 in Sydney.

Pretax loss for the financial year ended June 30 narrowed to AUD4.5 million, about £2.4 million, from AUD15.6 million the previous year, as revenue increased 5.1% to AUD24.8 million from AUD23.6 million.

Earnings before interest, tax, depreciation and amortisation loss narrowed to AUD2.4 million from AUD4.5 million, demonstrating "the underlying improvement in the business", Wellnex said.

Net loss narrowed 71% to AUD4.5 million from AUD15.6 million a year earlier. Wellnex said the improvement reflected a reduction in non-cash and other costs compared with the previous year.

Less positively, operating cash outflow increased to AUD2.7 million from about AUD666,000. However, this improved over the course of the recent year. Wellnex achieved about AUD500,000 in cash inflow in the second half, swung from outflow of AUD3.1 million in the first half.

Wellnex said the improvement reflected the impact of its strategic turnaround programme, which focused on simplifying its operating structure, improving cost discipline, prioritising higher-return activities and strengthening working capital management.

The company said the initiatives resulted in "material reductions" across its operating cost base and improved cash conversion during the second half of the financial year.

In August, Wellnex agreed to sell its pain-relief brand Pain Away for AUD19.8 million upfront, plus up to AUD1.5 million in earn-out payments, subject to shareholder approval. The cash from the disposal will be used to repay debt, strengthen the balance sheet, and support the company's next phase of growth, it said.

Looking ahead, Interim Executive Chair Eric Jiang said: "The board's focus remains firmly on completing the transformation of Wellnex into a financially disciplined, appropriately capitalised and sustainable business. We believe the significant improvement achieved during FY26, together with the proposed Pain Away transaction, places the company in a materially stronger position as we enter FY27."

Separately, Wellnex said that Vivienne Zhang has stepped down as chief financial officer, to be replaced by Joe Rinarelli. It gave no reason for her departure.

Rinarelli has more than 15 years of accounting experience at ASX-listed companies, Wellnex said. He will begin his new role on Tuesday on a part-time basis, the company said.

Copyright 2026 Alliance News Ltd. All Rights Reserved.