TIDM0RNS
Rapid Nutrition
17 May 2018
Rapid Nutrition PLC
("Rapid Nutrition" or "the Company")
Operational Update
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 and dietary supplements and a range of life
science products, is pleased to announce an operational update.
The Company has followed a clear strategic direction and has
made good progress towards transitioning from a licensing model to
a distribution model, with the objective of becoming vertically
integrated. The Company has now secured a number of key
distribution partners in the US, China and Australia, broadening
and strengthening the business. In order to support this growth,
the Company has successfully raised approximately GBP0.8m in the
current financial year.
US
The US is a core market for the business and Rapid Nutrition
continues to make inroads in this large and complex market having
extended its distribution to Amazon, the largest internet retailer
in the world for selected System LS(TM) products available to
purchase 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. As
previously announced, the Company secured an exclusive Master
Distribution Agreement (the "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), granting 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 be
able to distribute its own brands through the GNC global
network.
Benefits of the Agreement
-- The Agreement enables Rapid Nutrition to expand its product
offering in the Australian market with one of the largest and most
respected companies in the industry
-- Additional revenue streams will be created for the Company by
partnering with GNC and establishing its brands in Australia
-- Rapid Nutrition will be able to distribute its own brands
through the GNC global network creating an additional source of
revenue
As part of the GNC Australia launch, the Company has recently
opened its first health food store in a prominent location in
Sydney, Australia where it will promote its extended product
range.
CHINA
System LS(TM) has been approved in several categories in
preparation for expanding Rapid Nutrition's brand presence in
China. The Company is also supporting the entry into China by
extending the Company's audience of followers on WeChat, China's
leading social media platform with nearly 1 billion users. The
Company has recently sent an order of its organic Satisfy bars to
one of its China partners who will roll the product out to its
already well-established customer base.
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 has
appointed Iain Lang as Senior Manager (UK). Iain has extensive
experience in nutraceuticals. He is the Managing Director of
KickStand Marketing, a marketing agency specialising in health and
wellness and has previously worked for Ceuta Healthcare where he
was responsible for the sales and marketing of a client portfolio
of vitamins and mineral supplements.
The Company continues to explore the possibility of also listing
its ordinary shares on a UK stock exchange but notes the outcome of
this process will be subject to obtaining relevant approvals. The
Six Swiss Exchange continues to be the trading venue for the
Company's securities.
The Company recently reported its results for the six months
ended 31 December 2017 which generated GBP1.56m in revenue and a
gross profit of GBP1.1m. Profit before tax was GBP0.19m (six months
results are unaudited). For the year ended 30 June 2017, the
Company generated audited revenue of GBP1.9m and audited gross
profit of GBP1.3m (70% gross margin). Profit before tax was
GBP0.48m.
Simon St. Ledger, Chief Executive Officer of Rapid Nutrition
said:
"Rapid Nutrition is making excellent progress in its
international expansion and we are delighted to have secured a
number of key retail partners including GNC. The business is
transitioning from a licensing model to a distribution model with
the objective of becoming vertically integrated and our strategy to
grow our distribution channels both in retail stores, online and
through our DTC platform is well under way. As part of the process,
the Company has also established its own retail health food store
in Sydney, Australia this month. The store provides a great
platform to market our own brands and GNC brands. This, together
with our recent funding and our other achievements, means we are
excited about the Company's prospects and confident of our
performance in 2018."
Further enquires
Rapid Nutrition + 61 (0)7 3200
Plc Simon St. Ledger 4222
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+44 (0)203 764
Hybridan LLP Claire Noyce 2341
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Shan Shan Willenbrock +44 (0) 20 7930
TB Cardew Joe McGregor 0777
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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 US.
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.
This media information does not constitute an offer to sell, or
a solicitation of an offer to buy, any securities. This information
does not constitute an offering prospectus within the meaning of
article 652a or article 1156 of the Swiss Code of Obligations or a
listing prospectus within the meaning of the listing rules of the
SIX Swiss Exchange.
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.
This information is for distribution in the United Kingdom only
to: persons who (i) are outside the United Kingdom; (ii) are
investment professionals falling within Article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (Order); (iii) are persons falling within Article 48(2) of the
Order (certified high net worth individuals); (iv) are persons
falling within Article 49(2) of the Order (high net worth
companies, unincorporated associations, etc.); (v) are persons
falling within article 50(1) of the Order (sophisticated
investors); (vi) are persons falling within article 50A(1) of the
Order (self-certified sophisticated investors); (vii) are persons
falling within article 51 of the Order (associations of high net
worth or sophisticated investors); or (viii) are persons to whom it
may otherwise lawfully be communicated (all such persons together
being Relevant Persons). This media information is only available
to Relevant Persons and persons other than Relevant Persons must
not act or rely on it.
This media information may not be provided in Australia other
than to select investors ("Exempt Investors") who are able to
demonstrate that they (a) fall within one or more of the categories
of investors under section 708 of the Australian Corporations Act
to whom an offer may be made without disclosure under Part 6D.2 of
the Australian Corporations Act and (b) are "wholesale clients" for
the purpose of section 761G of the Australian Corporations Act.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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