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- Wellness and Beauty Solutions (WNB) subsidiary True Solutions will lose its exclusive distribution contract with Hydropeptide 10 months early
- True Solutions had an exclusive agreement with HydroPeptide for the distribution of HydroPeptide products in Australia and New Zealand
- WNB recently acquired the True Solutions business in a move expected to provide an extra $6 million in revenue
- 30 per cent of this would come from the contract with Hydropeptide
- Wellness and Beauty says it’s disappointed with the decision, but is well-positioned to marginalise the cash flow impact
- The company is down 33.3 per cent on the market this afternoon, trading at 0.4¢ per share
Wellness and Beauty Solutions (WNB) subsidiary True Solutions will lose its exclusive distribution contract with Hydropeptide 10 months early.
True Solutions had an exclusive agreement with HydroPeptide for the distribution of HydroPeptide products in Australia and New Zealand. The agreement was signed in August 2015 and was due to expire in December 2020.
The acquisition of True Solutions was expected to provide an additional $6 million into the revenue. 30 per cent of this would come from the contract with Hydropeptide.
Managing Director Christine Parks is disappointed with the decision but said the company is well-positioned to marginalise the cash flow impact.
“While the company is disappointed HydroPeptide has elected to conclude the contract slightly earlier than planned, the advancement in anti-ageing technologies and alternative brand ranges allows WNB to introduce new, high-quality products,” she said.
Wellness and Beauty says it has a range of high-quality substitute products within its portfolio, such as Priori, Aesthetics RX, Ilcsi, and Glo Skin Beauty.
“The exclusive nature of this agreement limited the company’s ability to introduce competitive products,” Christine told the market.
“Whilst it was the company’s intention to complete the full term of the agreement, we are in the fortunate position where we have several replacement product options already in our broader portfolio and are pursuing alternative, high-quality product offerings for our Australian and New Zealand customers,” she explained.
Wellness and Beauty is aiming to grow within the anti-aging, wellness and beauty industries. It has retail agreements with Chemist Warehouse, Woolworths, MYER and Sportsgirl.
The company is down 33.3 per cent on the market this afternoon, trading at 0.4¢ per share at 2:42 pm AEST.
