Perth-headquartered research-driven biotech company Holista Colltech Limited (ASX:HCT) is committed to delivering high-quality natural ingredients and wellness products. The Company also leads in research on herbs and food ingredients.
Holista has continued to undertake a slew of developments across its all four divisions to leverage growth prospects induced from the pandemic concerns. These include the launch of comprehensive COVID-19 test kits and disinfectants in addition to inking several strategic agreements that widen the Company’s footprint in the health & wellness space.
GOOD WATCH: How is Holista Colltech tapping market opportunities steered by COVID-19 outbreak?
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Thus, it would be safe to say that Holista is at a vantage point when it comes to cashing in on the exciting market opportunities. With this backdrop, let us explore the reasons in detail that position the Company well for growth.
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1. Multiple growth avenues with defensive revenue streams
Holista enjoys multiple growth avenues with its diverse divisions exposed to tap several mushrooming prospects.
From conscious nutrition choices to growing concerns for infections, several trends continue to boost business for Holista’s different divisions.
The Company’s sales and earnings have remained relatively stable despite the pandemic downturns. The fact that Holista operates in the health & wellness industry provides it further stability concerning the demand for its products.
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2. Global reach with proven products sold around the world
Australia-based Holista has an extensive presence in Malaysia. The Company’s partnership with Berjaya’s Country Farms has opened opportunities into several leading franchises in Malaysia such as Starbucks, Kenny Rogers, and 7-Eleven.
In addition to Malaysia, the recent strategic deals have expanded the reach of Holista’s proven products in other parts of the world.
Some of these deals and developments include:
- Deal signed with Costanzo’s to launch the world’s lowest GI clean label white bread in the US
- Exclusive distribution agreement for ovine collagen into China
- Approval of Natshield™ trademark in China
3. Large addressable and growing markets in health/wellness
The concept of health & wellness has broadened significantly over the past few years, with consumers now viewing wellness to not just encompass fitness and nutrition but also overall physical and mental health and appearance.
Moreover, there has been a substantive rise in consumer interest and purchasing power, which together presents opportunities for companies such as Holista, spending significantly on personal wellness.
4. Positive outlook with further growth momentum expected
Global trends support further growth over medium- to longer-term for all Holista’s divisions. Trading conditions in 2021 showed marked improvement over the previous year.
Key market factors are fuelling growth momentum of the Company’s varying divisions:
- Healthy Food- Growing consumer focus on healthier foods to drive growth
- Infection Control- New product launches and potential expansion into China to fuel the next phase of growth
- Dietary Supplements- New products contributing to growth
- Ovine Collagen- Major plant expansion when potentially a transformative deal with China becomes binding
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5. Improved results expected and ready for 2022 prospects
Holista is seeing several significant growth opportunities that can lead to a significant step-change in the Company’s earnings over short- to medium-term. Meanwhile, profit margins for the Company are expected to improve on 2021 due to cost optimisation and organic growth.
HCT shares traded at AU$0.041 on 21 January 2022.