ANAGENICS LIMITED ASX ANNOUNCEMENT
ANAGENICS LIMITED (ASX: AN1) - Q3 FY2022 BUSINESS ACTIVITY REPORT
• New leadership driving business changes
• Building revenue, identifying new opportunities
• Integration of BLC acquisition
• Reducing operational costs and refining strategy
SYDNEY, Thursday, 28 April 2022
Commentary on Q3 FY2022 group financials
Total revenue and other income was $2.17 million1 in Q3 FY2022 an increase of 121% from corresponding period in FY 21 reflecting the acquisition of BLC and 36% decrease from prior period reflecting seasonality.
The cashflow performance for the year to date and likely full financial year remains insufficient to fully absorb corporate overheads, and multiple revenue and cost strategies have already been implemented to rectify this going forward. The Board along with the senior management team continue to review and optimise operations to deliver sustainable profitability as a priority. This process can be expected to result in changes to the existing corporate structure and the commercial approach to international market penetration.
Net operating cash outflows for the quarter of $1.6 million includes final payment of employment entitlements to Maria Halasz, former CEO and Managing Director of Anagenics Limited, of $0.24 million (after tax) on her retirement from the Group on 28 February 2022. This payment along with director fees make up the related party payment as disclosed in item 6.1 of the accompanying Appendix 4C. Other significant contributors to cash outflow include build up of inventory purchases for the Japanese QVC event which took place in early April (sales will be included in Q4 FY2022). Cash balances remain strong and are expected to be sufficient until the return of group cash profitability.
Previously the company has released information on sales activity relating to specific business events (and sku's), including outcome of QVC sales channel activities in Japan. Given the acquisition of BLC and enhanced scale and diversity of the business, going forward the company does not intend to release this level of detail in individual announcements. Results from April QVC sales activity in Japan were below previous year activity but, encouragingly, the acquisition of BLC and continued financial performance remains strong
1 All figures quoted in the Business Activity Report are unaudited and may change subject to audit adjustments.
and ahead of prior period. QVC remains an important sales channel for Japanese operations, and for international Evolis sales activity which will continue.
Building revenue, identifying new opportunities
The Group is currently evaluating various M&A and brand distribution opportunities. These are designed to immediately increase revenue, drive economies of scale and expand the total brand portfolio and offering to customers in the beauty segment of the total market.
Reducing operational costs
As part of the comprehensive review of operational expenditure, numerous cost saving measures were identified. The full benefit of these cost savings will increase in coming months, ultimately annualising up to approximately $1.0 million over FY2023.
The integration of the BLC business into the existing Group has continued in the current quarter with the successful merger of warehouse operations in March 2022. This was an important milestone in combining the two businesses and will generate additional annual cost savings. Similar integrations are planned over next 6-12 months designed to drive transformational change and realise synergies by operating as one single business.
As part of restructuring Board and subcommittee functions, the Audit Committee and Nomination and Remuneration Committee responsibilities have been assumed by the full Board. In addition, in recognition of need to drive business to profitability and positive cashflow the Board has unanimously agreed to cancel all Board fees for a 6 month period commencing May 1, 2022.
Approved for release by the Board of Directors.
Sandy Beard
Chairman +61 412 308 263info@anagenics.com
Anagenics Limited (ASX: AN1)
Anagenics is a health and beauty-tech business growing shareholder value through the global distribution and sales of its proprietary and licensed brands of differentiated, clinically validated anti- aging solutions. BLC Cosmetics Pty Ltd is Anagenics' wholly owned subsidiary focused on sales and distribution of leading Australian and international brands of cosmetic and wellness products. Advangen Pty Ltd is Anagenics' wholly owned subsidiary engaged in the development and sale of proprietary first in class, best in class, clinically validated products for hair, skin and body. For further information, please seewww.anagenics.com andwww.evolisproducts.com.au.
Forward looking statements
This announcement may have forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks that may cause the actual results, performance or achievements of Anagenics to be materially different from the statements in this announcement. Actual results could differ materially depending on factors such as, amongst other, the availability of resources, regulatory environment, the results of marketing and sales activities and competition.
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
ANAGENICS LIMITEDABN
69 111 304 119
Quarter ended ("current quarter")
31 MARCH 2022
Consolidated statement of cash flows | Current quarter (3 months) $A'000 | Year to date (9 months) $A'000 |
| 2,283 (30) (1,279) (326) - (1,398) (831) - 6 (8) (17) 30 | 7,622 (100) (3,119) (1,086) - (3,562) (2,813) - 15 (20) (20) 623 |
(1,570) | (2,460) |
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) | entities (net) | - | (932) |
(b) | businesses | - | - |
(c) | property, plant and equipment | (2) | (79) |
(d) | investments | - | - |
(e) | intellectual property | - | - |
(f) | other non-current assets | - | - |
Page 1 |
Consolidated statement of cash flows | Current quarter (3 months) $A'000 | Year to date (9 months) $A'000 |
| - - - - - - - - - | - - - - - - - - - |
(2) | (1,011) |
| - - - - - (272) - - | - - - - 979 (793) - - |
(272) | 186 |
4.
Net increase / (decrease) in cash and cash equivalents for the period
4.1
Cash and cash equivalents at beginning of period
4.2
Net cash from / (used in) operating activities (item 1.9 above)
4.3
Net cash from / (used in) investing activities (item 2.6 above)
5,284
6,728
(1,570)
(2,460)
(2)
(1,011)
Consolidated statement of cash flows | Current quarter (3 months) $A'000 | Year to date (9 months) $A'000 | |
4.4 4.5 4.6 | Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period | (272) (18) | 186 (21) |
3,422 | 3,422 |
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter $A'000 | Previous quarter $A'000 |
| 2,958 136 328 - | 4,789 136 359 - |
3,422 | 5,284 |
6. Payments to related parties of the entity and their associates | Current quarter $A'000 |
- Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Anagenics Ltd. published this content on 27 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 01:43:03 UTC.
