Rapid Nutrition PLC
(“Rapid Nutrition” or “the Company”)
Rapid Nutrition, a natural healthcare company focused on the research and development, manufacturing and distribution of weight-loss and diet management products, sports nutrition products, vitamins and dietary supplements and a range of life science products, is pleased to announce an operational update.
The Company has followed a clear strategic direction and has made good progress towards transitioning from a licensing model to a distribution model, with the objective of becoming vertically integrated. The Company has now secured a number of key distribution partners in the US, China and Australia, broadening and strengthening the business. In order to support this growth, the Company has successfully raised approximately £1.1m in the current financial year.
The US is a core market for the business and Rapid Nutrition continues to make inroads in this large and complex market having extended its distribution to Amazon, the largest internet retailer in the world for selected System LS™ products available to purchase online. In addition, the Company has secured a number of independent retail accounts and is in discussions with other distribution partners.
The Company secured a number of new retailers including Drakes Supermarkets, the largest independent grocery retailer in Australia with more than 50 stores in South Australia and Queensland. As previously announced, the Company secured an exclusive Master Distribution Agreement (the “Agreement”) with General Nutrition Corporation (“GNC”), one of the world’s leading global speciality, health, wellness and performance retailers listed on the New York Stock Exchange (NYSE: GNC), granting Rapid Nutrition the exclusive right to market, sell and distribute GNC products in Australia through multiple channels including retail stores, e-commerce and other third-party retailers. In addition, Rapid Nutrition will be able to distribute its own brands through the GNC global network.
Benefits of the Agreement
The Agreement enables Rapid Nutrition to expand its product offering in the Australian market with one of the largest and most respected companies in the industry
Additional revenue streams will be created for the Company by partnering with GNC and establishing its brands in Australia
Rapid Nutrition will be able to distribute its own brands through the GNC global network creating an additional source of revenue
As part of the GNC Australia launch, the Company has recently opened its first health food store in a prominent location in Sydney, Australia where it will promote its extended product range.
System LS™ has been approved in several categories in preparation for expanding Rapid Nutrition's brand presence in China. The Company is also supporting the entry into China by extending the Company’s audience of followers on WeChat, China’s leading social media platform with nearly 1 billion users. The Company has recently sent an order of its organic Satisfy bars to one of its China partners who will roll the product out to its already well-established customer base.
Rapid Nutrition is seeking to expand in the UK and is in discussions with a number of retail partners in addition to establishing its own DTC platform and social media campaigns. To support its growth strategy and entry into the UK, the Company has appointed Iain Lang as Senior Manager (UK). Iain has extensive experience in nutraceuticals. He is the Managing Director of KickStand Marketing, a marketing agency specialising in health and wellness and has previously worked for Ceuta Healthcare where he was responsible for the sales and marketing of a client portfolio of vitamins and mineral supplements.
The Company continues to explore the possibility of also listing its ordinary shares on a UK stock exchange but notes the outcome of this process will be subject to obtaining relevant approvals. The Six Swiss Exchange continues to be the trading venue for the Company’s securities.
The Company recently reported its results for the six months ended 31 December 2017 which generated £1.56m in revenue and a gross profit of £1.1m. Profit before tax was £0.19m (six months results are unaudited). For the year ended 30 June 2017, the Company generated audited revenue of £1.9m and audited gross profit of £1.3m (70% gross margin). Profit before tax was £0.48m.
Simon St. Ledger, Chief Executive Officer of Rapid Nutrition said:
“Rapid Nutrition is making excellent progress in its international expansion and we are delighted to have secured a number of key retail partners including GNC. The business is transitioning from a licensing model to a distribution model with the objective of becoming vertically integrated and our strategy to grow our distribution channels both in retail stores, online and through our DTC platform is well under way. As part of the process, the Company has also established its own retail health food store in Sydney, Australia this month. The store provides a great platform to market our own brands and GNC brands. This, together with our recent funding and our other achievements, means we are excited about the Company’s prospects and confident of our performance in 2018.”
Rapid Nutrition Plc
+ 61 (0)7 3200 4222
About Rapid Nutrition
Rapid Nutrition is a natural healthcare company focused on the research and development, manufacturing and distribution of weight-loss and diet management products, sports nutrition products, vitamins and dietary supplements and a range of life science products. The Company has registered products in and or exported its products to Australia, Asia, Europe, Middle East, Africa and the US.
Disclaimer: This communication expressly or implicitly contains certain forward-looking statements concerning Rapid Nutrition PLC and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of the Rapid Nutrition group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Rapid Nutrition PLC is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
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