Final results for the year ended 30 June 2018

October 30, 2018

NOT FOR DISTRIBUTION IN THE UNITED STATES, United Kingdom, the European Economic Area OR AUSTRALIA

 

Rapid Nutrition PLC

(“Rapid Nutrition” or “the Company”)

 

Final results for the year ended 30 June 2018

 

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/dietary supplements and life science products, is pleased to announce operational results for the year ended 30 June 2018.  

While transitioning from a licensing model to a distribution model with the objective of becoming vertically integrated, Rapid Nutrition has secured several key distribution partners in the United States, China and Australia. With an ongoing dedication to satisfying consumer and investor demand, Rapid Nutrition has performed well in regard to its three key priorities of maintaining stability and momentum, elevating the customer and recalibrating costs.

 

In the past financial year, Rapid Nutrition increased bottom line results while moving forward with the new distribution model and a global perspective for the upcoming fiscal year.

 

Highlights

  • For the financial year date 30 June 2018, Rapid Nutrition reported profits of £1.07mil. The key objective for Rapid Nutrition during this transitional phase from a licensing model to a distribution model is maintaining the momentum of the business. The company closed FY 2018 with £2.4mil in revenue, an increase of 25 percent from the previous year and with a profit before tax of £1.07mil (compared to FY 2017’s £0.44mil).

  • Gross profit margin increased due to remaining licensing revenues received and one-off investments.

  • Extended distribution agreements and retail partnerships throughout United States, Australia, China and other key markets.

  • As part of its Australia launch, Rapid Nutrition opened its first health food store in a prominent location in Sydney, where it promotes its extended product range.

  • Rapid Nutrition has secured significant institutional investor interest and conducted a capital increase. The funds raised will further place the company in a strong position to be well-capitalised leading into the remainder of the year and will help the Company carry out its initiatives. 

 

Outlook

  • The first quarter of the new financial year has been strong and is trading in line with Company expectations.

  • In addition to key retail placements, the Company is in discussions with a major U.S. retailer to stock the SystemLS™ range nationally, which will fall in line with our group’s significant repositioning in business model direction from licensing to distribution.

  • Rapid Nutrition is pursuing expansion in the UK and is in discussions with retail partners while also establishing its own DTC platform and campaigns.

  • International expansion plans are exceeding targets, including significant retail partnerships such as GNC. The transition to a distribution model with the objective of becoming vertically integrated and the strategy to grow distribution channels in retail stores, online and through a DTC platform are well underway.

  • Recent investor support continues to create excitement about the Company’s prospects and confidence of performance for this financial year.

 

Simon St. Ledger, Chairman of Rapid Nutrition, noted:

“As we continue the transition from a licensing model to a distribution model, we are enjoying growth in global markets and key partnerships throughout the world. Our financial year and investor interest are on track with annual goals and we look forward to additional growth throughout this fiscal year.” 

 

 

Chairman’s Statement

Our clear strategic direction has helped us steer an effective path into greater vertical integration in markets across the globe, broadening and strengthening our business in the United States, China and Australia, among others. To support this growth, the Company has continued to secure investor and board support for the current financial year.

 

Revenue, interest and demand are all on target for the fiscal year and our core business continues its acceleration. We look forward to the fruits of labour coming to fruition as we continue our growth strategy.

 

USA

A core market for the business, Rapid Nutrition continues to make inroads in this large and complex market, extending distribution to Amazon, the largest internet retailer in the world for selected System LS™ products online. In addition, the Company has secured a number of independent retail accounts and is in discussions with other distribution partners.

 

AUSTRALIA

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. Likewise, the Company secured an exclusive Master Distribution 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). This agreement grants 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 have access to distribute its own brands through the GNC global network. As part of the GNC Australia launch, Rapid Nutrition opened its first health food store in a prominent location in Sydney, where it will promote its extended product range.

 

CHINA

System LS™ has been approved in several categories in preparation for expanding Rapid Nutrition's brand presence in China.  The Company is also supporting further entry into China by extending followers on WeChat, China’s leading social media platform with nearly 1 billion users.

 

UK

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 is currently in discussion with a well-established UK distributor to exclusively represent it SystemLS™ brand for the UK market.

 

SRI LANKA

As part of expansion in the rapidly growing Asia market, Rapid Nutrition secured a distribution agreement with Schering Life Sciences to market and distribute the SystemLS™. The agreement is expected to generate revenues for the company in the first year. Product registration is currently in process and with the first orders scheduled once complete.

 

FINANCIAL RESULTS

2018 Audited Financial Report

 

With a refined business model enabling greater long-term growth potential, the fiscal year witnessed increased distribution across several continents, and expanded sales team, and a significant rollout of the SystemLS™ product line across the globe. We will continue to take advantage of a strong global business climate with our forward focus on growth.

 

Thank you for your interest and dedication. Our successes are made that much sweeter with your continued support.

 

Sincerely,

 

Rapid Nutrition board

 

 

Further enquires:

 

Rapid Nutrition: +44 20 3239 2561

 

 

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 United States.

 

 

 

Legal 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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This media information is not being issued in countries where the public dissemination of the information contained herein may be restricted or prohibited by law. In particular, this media information is not being issue in the United States of America and should not be distributed to U.S. persons or publications with a general circulation in the United States. Any non-compliance with such restrictions may result in an infringement of U.S. Securities Laws. In particular, the securities of Rapid Nutrition PLC have not been registered under the U.S. Securities laws and may not be offered, sold or delivered within the United States or to U.S. persons absent the registration under or an applicable exemption from the registration requirements of the U.S. Securities laws.

 

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