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Star Combo Pharma boosts order book, exports

(Source: Star Combo)

Australian vitamins and nutraceuticals maker Star Combo Pharma says it has the strongest order book in its history, on the back of growing third-party manufacturing contracts. 

As a result, manufacturing revenue of $7.5 million was up by 22.8 per cent during the first half which helped offset a heavy decline in the company’s retail sales, which were impacted by Covid-related trading restrictions. Group revenue was $12.4 million, compared with $15.9 million during the same period a year earlier. 

Star Combo’s retail business comprises the online platform and retail stores Koala Mall.

The ASX-listed company said it secured a $5 million contract to produce 290 million capsules for a large Australian health supplements brand, an order to be completed by the end of the third quarter of the 2022 financial year.

It also sealed a 12-month distribution deal with a Vietnamese distributor for the sale and distribution of Star’s proprietary health supplement product range, Costar.

Star Combo CEO, Su Zhang said the company had navigated operational challenges associated with Covid-19 during the half year and its core contract manufacturing business continues to strengthen. 

The company invested $1.5 million into the expansion and upgrading of its manufacturing plant in Smithfield, in Sydney’s west, and has received approval for an additional new multi-level complex and purpose-built R&D and test laboratory facility on an adjacent site. The expansion will allow the business to at least double production capacity in the first half of 2023.

“We are excited about the opportunities our site upgrade presents, which will allow us to increase production in the first half of FY23,” said Zhang. 

“Our reputation as a leading contract manufacturer of health and beauty products continues to grow and our order book strengthens.”

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