PETALING JAYA: Nova Wellness Group Bhd plans to continue expanding its business next year, in view of a more favourable market sentiment.

       While the nutraceutical company acknowledged that the operating environment would likely remain challenging, it said it would explore new opportunities in 2022 to expand its business.

       Nova Wellness said in its 2021 annual report that its prospects “appear to be bright”, moving forward.

       “The nutraceutical market holds much potential on the back of growing household income and trends of increasing awareness on general health and well-being.

       “In the long term, the global dietary supplement market is projected to grow at a compound annual growth rate of 8.6% from 2021 to 2028,” according to Grand View Research.

       “The growth shall be propelled by a surge in worldwide demand for health supplement products, as consumers take a more proactive stance towards their health and well-being, especially following the Covid-19 pandemic.

       “Zooming into Malaysia, the growth of the domestic health supplement market shall be driven by increasing awareness for proper nutrition intake and the growing ageing population,” said the company.

       Barring unforeseen circumstances, the company expects its financial performance and prospects to be satisfactory in the financial year ending June 30, 2022 (FY22).

       Apart from business expansion, Nova Wellness said it would also continue its efforts to improve efficiency of its existing business.

       In FY21, Nova Wellness’ revenue recorded an increase of 18.1% to RM40.48mil when compared to the previous financial year.

       The increase was mainly due to higher sales contribution from the company’s house brand products under the dietary supplements and functional food categories.

       The company’s profit for the year also increased by 11.9% year-on-year to RM14.56mil. The net margin for FY21 stood at 36% as compared to 38% in FY20.

       Nova Wellness chairman Abdul Manaf Mohamad Radzi said the company had maintained the business “as normal as possible”, despite the challenges following the Covid-19 outbreak.