August 18, 2022


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EVE Health : Appendix 4C – June Quarter 2022

28 July 2022

June 2022 Quarterly Update

  • Australian revenue for Meluka Australia up 30% QoQ
  • Group1 unaudited revenues of $1.3m for the quarter, up 21% QoQ
  • Milestone launch – Meluka Australia’s first product launches featuring its proprietary probiotic strain, Lactobacillus rhamnosus Beebiotic MAP01™
  • Completion of Entitlement Offer raising $0.74m
  • Rodney Hannington appointed Non-Executive Director to the Board
  • Cost reduction program continues across group businesses

EVE Health Group (ASX:EVE, EVE or the Company), a vertically integrated health, nutrition and wellness company, has today released its Appendix 4C Report for the three-month period to 30 June 2022 and is pleased to provide a review of operational progress during the quarter.

The June quarter saw Group1 revenues of $1.3 million, up $0.2m on the prior quarter, with strong growth in Meluka Australia sales in the Australian market which grew 30% QoQ. A slight decrease in revenue across the company’s export regions in North America and Japan QoQ was expected, as a result of planned expenditure reductions in marketing and advertising costs, whilst we continue to contend with logistical issues in offshore markets and focus on cash conservation initiatives across the group businesses.

Meluka Australia

The June 2022 quarter was another record quarter of Australian sales for Meluka Australia, with the beverage range continuing to be the leading product category in the Australian market. A significant milestone was achieved during the period with Meluka Australia’s first two product launches featuring its proprietary probiotic strain, Lactobacillus rhamnosus Beebiotic MAP01™, derived from Meluka Australia’s beehives, in both the beverage and skincare category.

The launch of the P3 Gut Builder, a first of its kind beverage to support digestive health which contains pre, pro and postbiotics, was supported by a virtual press event attended by representatives from leading Australian media as well as social media influencers in the nutrition, health and wellness space, resulting in extremely positive feedback. Meluka Australia’s first offering in topical probiotics, Flora+ Skin spray, was also released to the Australian market. Initial sales results for both products have been promising. Other product launches during the period included Meluka Australia’s first vegan offering, Voney™, a plant based spread inspired by honey.

1 Group revenue includes the revenue from all 100% owned subsidiaries as well as associates Naturally Australian Products (49% owned by EVE) and Omni Innovation (38% owned by EVE), the figures for associates are not consolidated into the Appendix 4C.

Figure 1: Products launched: P3 Gut Builder (top), Flora+ Skin Probiotics (left) & Voney™ (right)

Australian Distribution

Meluka Australia is continuing to present its product range to several potential distribution partners. With a focus on its digestive health products, the key targets are pharmacy, health food and aligned independent banner group companies and distributers. Discussions have progressed with a few of these targets and an outcome is expected with these groups in the coming quarter.

London Honey Awards

Meluka Australia’s Native Wildflower Raw Honey was awarded a Gold Quality Award at the London Honey Quality Competition 2022, a category of the International London Honey Awards, during the period. The London Honey awards aim to promote high quality honey products and uses a ‘blind’ method of tasting by the jury panel, evaluating criteria such as appearance, odour, texture, flavour and mouth-feel of honey.

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Sydney Good Food & Wine Show

Meluka Australia exhibited its range of health and wellness products at the Sydney Good Food & Wine Show in June. Its first consumer exhibition received extremely positive feedback and the products were well received by visitors.

North America

As previously reported, Meluka Australia postponed its expansion plans in North America due to ongoing impacts of supply chain delays. During the period, we continued to support sales for existing products within these regions with leaner advertising and marketing spend.

Whole Foods Market, Inc, through distributor UNFI, placed a further purchase order of Meluka’s Organic Raw Honey, which was fulfilled from the Company’s US warehouse in early July.


As previously reported, Meluka Australia planned a slower growth plan into the Japanese market until supply chain pressures ease. Similar to the North American market, sales across the Amazon platform in Japan were supported by leaner advertising spend. Marketing initiatives during the period included finalisation of localised Japanese marketing collateral, as well as starting to leverage influencer marketing across social media platforms to drive awareness to Japanese consumers.

Sustainability Press Event, Tokyo

Meluka Australia was featured in an Austrade press event in Tokyo, Japan on 31 May. The promotional event was focused on sustainability, targeting major business and food industry media in Japan with the aim of raising the profile of sustainably produced Australian food products. Meluka Australia CEO Ben Rohr presented the brand’s innovative gut health and raw honey products to selected guests and media at the event. Attendance delivered an important opportunity to forge local connections with media and industry professionals.


The Company owns and operates the Robyndale organic tea tree plantation in the Bungawalbin Valley in Northern New South Wales. The impacts of flooding events and continued rain in the region have continued to hamper access to the Company’s plantation and infrastructure. The Company’s staff continue to undertake clean-up and repair operations with the impact on the Company’s infrastructure immaterial to the Company’s on-going plans.

The continued rain in the region means the ground remains relatively waterlogged. In line with the Company’s previous communications, this will result in a delay to the next tea tree harvest due to these ground conditions. The Company maintains adequate inventory of organic tea tree oil products to meet current customer orders.

Naturally Australian Products Inc (49% EVE)

Naturally Australian Products (NAP), the US distribution business held 49% by EVE, which sells bulk essential oils and extracts to North American businesses recorded revenue of $0.8 million in the quarter, the highest quarterly result for the year.

During May, the NAP sales team exhibited in person at the New York Society of Cosmetic Chemists Supply Day. Attendance at the exhibition was successful in building brand awareness and showcasing the company’s range of essential oils, hydrosols, native extracts and carrier oils to a new potential audience.

NAP is owned 49% by EVE, accordingly it is accounted for as an investment in an associate, meaning its revenue is not consolidated into the Appendix 4C.

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Omni Innovation (38% EVE)

Myopharm Limited, which holds the pre-meal diabetes IP licence for Australia, China and Europe failed to make the required licence instalment to Omni Innovation on 30 June 2022, a breach of the binding term sheet entered into between the parties. Omni Innovation has issued Myopharm with a Notice of Default for this breach and hopes to seek a satisfactory resolution.

Omni Innovation continues to explore potential commercialisation partners or an outright sale of the Company or its intellectual property portfolio. Discussions were held with several parties during the quarter.

Following his appointment to the EVE Board, Mr Rod Hannington has resigned as CEO of Omni Innovation but is still available to consult to the company as required.

Omni is owned 38% by EVE, accordingly it is accounted for as an investment in an associate, meaning its revenue is not consolidated into the Appendix 4C.

Corporate & Financial Update

Key statistics

  • Total unaudited Group1 revenue for the quarter was $1.3 million
  • Cash at bank of $1.1 million
  • Inventory reduced to $1.4 million
  • Receivables and prepayments decreased to $0.25 million from $0.45m
  • Creditors payable decreased from $0.5 million to $0.45m
  • $0.92 million in debt facilities with $0.45 million drawn

Overall, the cash outflow was lower in the quarter due to implementation of the Company’s cost reduction initiatives and the receipt in the quarter of the FY21 R&D tax incentive.

The key financial metrics for the quarter include:

  • Receipts from customers totalled $0.6m, consistent with the prior quarter
  • Product manufacturing and operating costs of $0.4m, consistent with the prior quarter
  • Advertising and marketing activities spend of $0.4m in the quarter, down $0.2m on the prior quarter
  • Net cash used in operating activities of $0.7m, $0.3m lower than the prior quarter. Staff costs and administration costs were slightly lower than the prior quarter and are expected to be lower in the coming quarters as the Company’s cost reduction initiatives continue.
  • During the quarter the Company has paid $78,000 in director fees and $21,000 for a fully provisioned office and administration staff

The following is a summary of the breakup of group1 revenue by category, region and sales channel for the quarter and YTD:

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Bulk sales,

Bulk sales,

Contract manufacturing,


Contract manufacturing,








sales, 33%

sales, 28%

Figure 2:Breakdown of sales across EVE companies by product type in June quarter and YTD.



Asia (Excl



Asia (Excl


China), 2%


China), 3%





Figure 3:Breakdown of sales across EVE companies by region in June quarter and YTD.


Wholesale, 67%


Direct to

Direct to









Figure 4:Breakdown of sales across EVE companies by sales channel in June quarter and YTD.

Completion of Rights Offer

During the period the Company conducted a pro-ratanon-renounceable rights offer. The offer closed on 20 June with $740,674 raised at $0.001. The Directors reserve the right to place any Shortfall Shares (3,569,134,450) within three months of the closing date of the Offer.

Changes to Board

Mr Rodney Hannington was appointed to the Company’s board effective from 15 June as a Non-Executive Director. Mr Hannington has been working in marketing and strategy services in consumer health and fast-

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EVE Investments Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 22:47:03 UTC.

Publicnow 2022


Sales 2021 2,80 M

Net income 2021 -3,63 M

Net cash 2021 2,15 M

P/E ratio 2021 -4,21x
Yield 2021
Capitalization 5,05 M
3,50 M
EV / Sales 2020 7,70x
EV / Sales 2021 4,72x
Nbr of Employees
Free-Float 33,6%


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