Media Release: Eagle Health Up 16.4% to $41.7 Million for HY18 Revenue


Posted on August 28th, by Bourse Communications in News and Announcements. Comments Off on Media Release: Eagle Health Up 16.4% to $41.7 Million for HY18 Revenue

Eagle Health Holdings Limited (ASX: EHH) (“Eagle Health” or “Company”), a vertically integrated producer and supplier of traditional Chinese medicine (TCM) and Western nutritional products, is pleased to present its interim financial results for the half-year ended 30 June 3018 (HY18) .

OPERATIONAL
The Company completed a number of commercial milestones in HY18. The highlights include:

  • Commencement of sales of Hutang-1 premeal shake for Type2 diabetes, developed by Omni Innovation in Australia
  • Launch of 50 new TCM products sold in pharmacies
  • Strong ongoing growth of Eagles patented Dendrobium organic TCM
  • Roll-out of Xiamen flagship stores in Fujian province, with target to open 100 stores to reach 570 million potential new consumers
  • Collaboration with strategic partners including AMKA of South Africa and the appointment of Mr Haroon Kalla of AMKA as a Non-Executive Director

FINANCIAL
The Company’s key financial points for HY18 are:

  • Half-Year revenue of $41.7m – up 16.4% from HY2017 and 10.0% in constant currency
  • Double digit revenue growth in multiple key product categories with Protein Powders and Dendrobium leading the growth
  • Increased investment in sales and marketing to drive brand awareness
  • Ongoing investment in plant upgrade as well as a high speed line for the diabetes product
  • Half year gross profit of $21.1m – 50.6% margin
  • Closing cash balance of $37.3m – targeted for growth and acquisition opportunities
  • Earnings per share of 1.54 cents

Mr Zhang Mingwang, Managing Director and CEO of Eagle Health, said:

“We are pleased to report that our company continues to meet our growth expectations and deliver on commitments we have made to shareholders since our IPO in July 2017. The Chinese Healthcare market continues to be very dynamic and we are delighted to have been able to launch our new Traditional Chinese Medicine products to match the Chinese government support for this category and meet unmet needs of Chinese consumers. We also plan for long term growth in our Hutang-1 pre meal diabetes shake which we launched in a targeted manner earlier this year.

“Our consumers are changing the way they purchase products and we are proud to announce the commencement of Eagle Health’s rollout of 100 flagship stores. This initiative is designed to ensure we make our products more widely available in our core provinces in China. I have no doubt the dynamic nature of this category will continue, and I feel confident that our experienced team in Xiamen will stay on the leading edge of consumer behaviour.”

About Eagle Health Holdings Limited

Eagle Health is an ASX listed vertically integrated health and nutritional products business which develops, manufactures and distributes products into 26 provinces in China. Eagle Health produces a range of traditional Chinese Medicine and Western nutritional products including amino acids, protein supplements, lozenges and dendrobium oil. Eagle Health has a GMP certified manufacturing facility and a Head Office in Xiamen, China, acting as a central hub for distribution into Chinese pharmacies, health food stores, trading companies and supermarkets. Eagle Health has a corporate and sales office in Melbourne, Australia. Eagle Health has a stated strategy of acquiring or partnering high quality Australian products for distribution into China and in 2017 a pre-meal shake for Type 2 diabetes, branded Hutang 1, was licensed from Omni Innovation in Australia.

For more information visit: www.auehh.com.au or www.eaglehealthltd.com/EN/index.aspx

For further information please contact:

Rod North, Managing Director,
Bourse Communications Pty Ltd
T: +613 9510 8309, M: +61 408 670 706,
E: [email protected]





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