Preliminary unaudited sales for Xenitra Ltd (ASX:XEN)'s March quarter reached $8.3 million, up more than 300% on the previous quarter, with momentum building through the period as March sales alone topped $4 million.
The result was driven by its nutritionals business, which now includes the recently announced $30 million strategic partnership with Rockcheck Group for Danone products. A chart in the announcement shows monthly sales rising steadily across the quarter, from about $1.5 million in January to roughly $2.5 million in February and more than $4 million in March.
Chairman Anthony Noble said the March quarter sales performance marked an almost full recovery to annualised FY24 sales levels after a year of restructuring and turnaround work.
“The company saw a strong growth in sales across the quarter with sales in March surpassing $4m AUD, representing an almost full recovery of the annualised sales levels of FY24, after a year of business restructuring and turnaround. This result was achieved with a leaner and more focused structure. While driving these results in the quarter, the company has also launched two new and higher margin sales channels, OTC Medicines and the Blockchain Tokenised sales. These two new divisions represent completely new sources of future revenue growth, with significantly higher gross margins. The value of this work is not reflected in this strong performance in Q3, but will begin to deliver sales in Q4. Importantly, the company also cemented a solid floor to revenue in the Nutritionals division for the coming year, with the signing of the $30m Rockcheck offtake agreement for Danone products. This important customer also approved Xenitra as a supplier to the conglomerate more broadly, which enables the sales of further products that will also be accretive to revenues.
Xenitra operates in Asia across fast-moving consumer goods, nutraceuticals and over-the-counter medicine products, selling through B2B wholesale, retail distribution and ecommerce channels. The company said it has generated more than $70 million in sales since 2024.
New channels set up for Q4 contribution
“After a period of transition and renewal, the company now has a solid basis from which to grow across multiple new markets, all of which are firmly aligned to our strategy and are based in markets where the company has a proven track record for sales and marketing excellence," Noble said.
"The acquisition of Fukang has put in place the required team and an established online presence for the new OTC medicines division, while the launch of OPAL token initiated our blockchain tokenised, Web3 sales ecosystem – a truly groundbreaking and innovative new division in the company, anchored in real-world assets, that are a class of products that the company is highly experienced in selling into our diverse and deep distribution channels.”
Xenitra sells FMCG, nutraceutical, OTC medicine and personal care products through a channel-optimised sales model spanning B2B trading, retail distribution and major ecommerce platforms in China. It also describes itself as a brand acceleration partner for western brands entering Asian markets.