Elixinol Wellness (ASX:EXL) Expands Australian Nutrition Brands as FY26 Margins Improve Performance

Aditi Sarkar

06 November 2026 10:34 PM AEDT

Elixinol Wellness (ASX:EXL) Expands Australian Nutrition Brands as FY26 Margins Improve Performance

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Highlights

Elixinol Wellness recorded H1 FY26 Revenue of AUD 7.2 million, up 5.8%, while its gross Margin reached 43% broadly overall.
The company reported adjusted EBITDA loss of AUD 0.1 million, reflecting a narrower loss alongside improved continuing operations performance overall.
Quarterly revenue reached AUD 4.3 million in Q2 FY26, with gross margins at 45% and positive operating cash flows overall.
Elixinol completed the divestment of its United States CBD Business in September 2026, sharpening its focus on Australian nutrition brands.

Elixinol Wellness Limited (ASX:EXL) is an ASX-listed sustainable nutrition and wellness company. The company operates a portfolio of Australian consumer health and nutrition brands, including Elixinol (hemp-derived wellness products), The Healthy Chef (premium plant-based nutrition products for retail), and The Sustainable Nutrition Group (organic and specialty nutrition brands). Elixinol Wellness reports on a January–December financial year. H1 FY26 (January–June 2026) results were released 31 August 2026, with the September 2026 investor presentation confirming US divestment completion on 4 September 2026.

Revenue and Margin Transformation

Elixinol Wellness's H1 FY26 revenue from continuing Australian operations was $7.2 million, up 5.8% from $6.8 million in H1 FY25. More significantly, gross margin improved from 33% (H1 FY25) to 43% (H1 FY26) — a 10 percentage point expansion driven by: exiting low-margin product lines; improved procurement and Manufacturing efficiencies across The Healthy Chef and The Sustainable Nutrition Group; and channel mix improvement as premium direct-to-consumer and pharmacy retail channels (Priceline expansion) replaced lower-margin wholesale volume. Operating expenses fell 25% (from $4.4 million to $3.3 million), reflecting the removal of costs associated with the discontinued US business and domestic overhead rationalisation. The combined effect was an adjusted EBITDA improvement of $2.0 million (from -$2.1M to -$0.1M).

Brand Performance and New Channels

The three Australian brands all delivered double-digit revenue growth in H1 FY26. The Healthy Chef — a premium plant-based nutrition Brand known for products including Creamy Dreamy hot chocolate, protein powders, and superfood blends — expanded into Priceline Pharmacy in May 2026, adding a nationwide pharmacy retail channel with over 450 stores. The Elixinol brand (hemp-derived CBD oils, capsules, and topical products) continued to build its consumer base in Australia. The Sustainable Nutrition Group added complementary premium nutrition brands to the portfolio. Q2 FY26 (April–June 2026) stand-alone revenue of $4.3 million, with 45% gross margin and positive cash flows, demonstrated the strongest single quarterly result in the group's Australian-focused history.

US Divestment and Vitable Acquisition

Elixinol Wellness formally divested its US CBD business on 4 September 2026, completing a multi-year exit from the legacy hemp/CBD model it had operated since listing. The US business had generated significant losses (the statutory H1 FY26 net loss of $1.1 million included a $0.1 million loss from the discontinued US segment). Post-divestment, Elixinol Wellness is a 100% Australia-focused nutrition and wellness company. In September 2026, the company acquired Vitable — a personalised vitamin and supplement subscription service — for approximately $2 million, expanding its digital health and personalised nutrition capabilities alongside its existing retail brands.

Stock Price Information

Shares in Elixinol Wellness Limited (ASX:EXL) were trading at approximately $0.007 at the Q2 FY26 results release (28 July 2026), rising 16.67% on the day following the record quarterly revenue disclosure. The stock has seen significant value compression from prior years as the US CBD business losses weighed on market confidence, with the Australian operations' growth not yet fully reflected in the share price. As of 6 November 2026, EXL shares were trading on the ASX. Investors should refer to ASX announcements at www.asx.com.au and Investor relations at www.elixinolwellness.com for the latest company updates.

FAQs

Q: What is The Healthy Chef and why is it important to EXL?

A: The Healthy Chef is a premium Australian nutrition brand that specialises in plant-based, natural ingredients for cooking and nutrition products. Its product range includes protein powders, superfood blends, collagen products, and specialty food ingredients (such as pure matcha, raw cacao, and organic flaxseed) sold primarily through its own e-commerce channel and premium health food retailers. It is one of Elixinol Wellness's most commercially dynamic brands, with strong gross margins due to its direct-to-consumer model and premium positioning. The addition of The Healthy Chef to Elixinol's portfolio was intended to diversify beyond the hemp/CBD category, and the brand's expansion into Priceline Pharmacy in May 2026 marks its first major pharmacy retail channel, potentially significantly increasing distribution reach.

Q: Why did EXL divest its US business?

A: The US CBD/hemp business was a legacy from Elixinol's origins as a global hemp company when it listed on the ASX. The US CBD market became heavily competitive and subject to regulatory uncertainty (the FDA's approach to hemp-derived CBD products remained inconsistent), making it difficult for smaller brands to generate sustainable profits. The US business generated ongoing losses that obscured the improving performance of the Australian operations. After failing to reach profitability in the US, management decided to exit the US market to focus capital and management attention on the growing Australian nutrition portfolio (Elixinol, The Healthy Chef, The Sustainable Nutrition Group). The divestment, completed 4 September 2026, removed the loss-making drag and positions the company as a leaner, Australian-focused business with an improving margin profile.

Q: What is Vitable and why did EXL acquire it?

A: Vitable is an Australian personalised vitamin and supplement subscription service. Customers complete a health quiz online, and Vitable recommends a customised daily vitamin pack delivered as a monthly subscription. The acquisition price was approximately $2 million. For Elixinol Wellness, Vitable adds a digital health and direct-to-consumer subscription revenue stream that complements its existing brands. Personalised nutrition is a growing category internationally (driven by consumer interest in preventive health and wellness customisation), and Vitable gives EXL a subscription-based recurring revenue model alongside its traditional retail and e-commerce channels. The acquisition was funded from existing cash resources and was intended to be completed shortly after the US divestment in September 2026.

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