By Alex Langton | 1 November 2023
Updated 11 November 2023*
What is new? Zoom Q&A
Myself and Mike Caine have a financial interest in OptiBiotix Health.
In an expansive commercial update, OptiBiotix Health â the life sciences company known for its pioneering work in obesity, high cholesterol, diabetes, and skincare sectors â has provided an update on its newly charted course following the recently restructured executive team.
This year, the board's strategies have pivoted around maximising profitability at a micro-business unit level. Their success at this tier is envisaged to usher in overarching profitability for the company; subsequently, of course, this in itself is not new; COVID disrupted it. Several levers have been identified and pulled: paring down costs, re-engaging existing partnerships, and embarking on new alliances, especially in the coveted markets of the USA and Asia. The emphasis has been unmistakably clear - expanding their burgeoning e-commerce operation to diversify channels and, thus, mitigate partner-related risks. The company is leveraging the brand awareness of its SlimBiome and LeanBiome functional ingredients brands brought to prominence through its partners like Holland and Barrett, and this approach helps to minimise marketing costs.
Post the boardâs restructuring in March, significant strides have been made with the first-generation products. As per this bulletin, a separate commentary detailing developments around the second-generation products is imminent.
Returning Partners Breach Forecasts
With the retail landscape remaining unpredictable, OptiBiotix reports an uptick in sales due to dynamic account management. Notably, Apollo, the Indian retail chain, saw September 2023 sales catapult by a staggering 624% YoY, albeit from a low progressive start base. These stores also witnessed an 87% customer retention rate and a 27% influx of new patrons for the GoFigure product line. Paralleling these positive trajectories, the Nahdi Medical pharmacies in Saudi Arabia reported a 219% surge in sales since their March 2023 launch. With the enhanced brand visibility resulting from a fortified Amazon presence and invigorated marketing, sales are poised for an uptrend, both in-store and online.
It is often reassuring to investors when we see triple-digit percentage sales growth. Still, cash is king, and net cash is an even better guide, whether we are discussing new launches or historical multi-years. E-commerce channels lead to immediate cash returns, reducing the reliance on retail partners who often demand payment terms of 4-6 months or more.
Notably, Holland and Barrett and THG have shown upward trends. The globally recognised THG's Myprotein, currently in the throes of a comprehensive rebranding, is actively collaborating with OptiBiotix to differentiate and augment its product offerings.
The Q&A session recorded with Stephen OâHara covers a broad range of questions related to the trading update we think you will find interesting.