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Rapid Nutrition Plc (OTCQB:RPNRF) Expands International Product Distribution, Argus Research Initiates Coverage

 

Rochester, NY -- (ReleaseWire) -- 09/17/2019 --Being healthy is one the key factors in living a long and happy life. The saying goes that "health is wealth," which is absolutely true because the more someone is unhealthy, then they will be subject to higher insurance premiums, greater healthcare costs, downgraded life expectancy, and more. Without maintaining a keen eye on your health, it will certainly cost you more than money over the long term.

This is why the health and wellness supplement industry continues to thrive. According to market research firms, the industry's growth is predicted to continue into the next decade.

Reports And Data notes that the global nutrition supplement market was worth $124.8 billion USD in 2018. The market research firm estimates that by 2026, the global market could balloon to $210.3 billion USD. This represents a compound annual growth rate (CAGR) of 6.4% between 2019 and 2026.

Grand View Research estimates that the global health supplement market will be worth $194.63 billion USD by 2025, which represents a CAGR of 7.8% between 2018-2025.

However, it is the natural and organic subsect of the health supplement market that is estimated to see slightly higher growth over the near future. According to Persistence Market Research, the global natural health supplement market is estimated to be worth $68.14 billion USD by the end of 2024. This represents a CAGR of 8.0% between 2017 and 2024.

One company that seeks to capitalize on the global health supplement boom, particularly the organic and natural subsect, is Rapid Nutrition, Plc (OTCQB: RPNRF).

Rapid Nutrition: Overview:

Rapid Nutrition is engaged as a natural healthcare company, which is focused on the research, development, production, and distribution of a wide range of life science products. "The Company's core business is the creation of organic and natural scientific-based health food supplements and building them into recognized brands," according to the company.

Rapid Nutrition, Plc was founded in 2001 by Simon St. Ledger and his wife, Leisa, who is a former policer officer in Australia. According to the company's history, Mr. St. Ledger founded Australia-based Rapid Nutrition after seeing the health and wellness supplement market was oversaturated with unnatural and non-organic ingredients.

Brands:

The company currently has two main flagship brands: Leisa's Secret and SystemLS

- Leisa's Secret brand is focused around weight loss and consists of meal replacement shakes, energy tablets, weight loss tablets, and appetite suppressant powders.

- SystemLS brand is designed to help support weight loss and maintaining a "modern lifestyle." The SystemLS brand consists of high protein shakes, high fiber bars, organic multi-vitamins, fat burners, and grain granola cereal.

RPNRF: Product Distribution Network

Rapid Nutrition's product distribution doesn't stop with Australia. The company's products are available through major e-commerce and brick-and-mortar locations around the world, including: Amazon.com, GNC, Select Nutrition, Complete Health Products, Drakes Supermarkets, Lucky Vitamin, Discount Drug Stores, Super Health Center, Mr. Vitamins, and more.

"In April 2018, Rapid signed a five-year deal to become the sole Australian distributor for GNC (NYSE: GNC), one of the world's leading global specialty health, wellness and performance retailers. Rapid has the right to distribute its brands through GNC's global network of approximately 9,000 locations, more than 70% of which are located in the United States. Rapid has recently launched the distribution of SystemLSTM products into an initial 500 GNC stores in North America, and GNC's online store," according to a report from Argus Research.

Management notes that its key market priorities are in the United States, United Kingdom, Europe, China, and Australia. However, Rapid Nutrition does have exposure to other major countries like Saudi Arabia, Korea, Singapore, South Africa, UAE, and more. While e-commerce and physical retail locations continue to be a key focus, the company also notes interest in seeking distribution with healthcare facilities, such as clinics, doctors' offices, dietician offices, personal trainers, OTC cosmetics, and more.

RPNRF: Global Manufacturing Footprint

Rapid Nutrition has a global manufacturing footprint, which extends across the U.S. and Australia. Here is a breakdown of the company's manufacturing capabilities across the three countries:

- United States: Three contract manufacturers with GMP-approved (Good Manufacturing Practice regulations) manufacturing facilities in California, Florida, and Texas

- Australia: Two contract manufacturers with GMP-approved facilities located in Queensland and New South Wales

Global Overweight/Obesity Rates Continue to Surge

According to The Sydney Morning Herald, over 70% of Australian men were considered to be overweight or obese in 2018. Around 56% of Australian women fall into the "overweight or obese" category. To make matters worse, The Sydney Morning Herald found that over the past two decades, the number of people considered "severely obese" has nearly doubled to 9.4% of population. With Australia's obesity problem continuing to grow, Mr. St. Ledger saw the need to develop products to help Australians change their dietary habits for a healthier lifestyle. As a result, Simon and Leisa St. Ledger founded of the company and began product launch (Rapid Nutrition Products Page).

Outside of Australia, obesity continues to be a top medical concern around the world. In fact, the New England Journal of Medicine reported in 2017 that roughly a third of the entire global population is considered to be at least overweight. The medical publication also noted that roughly 10% of the entire world population is obese. To make matters even more dire, obesity rates in 70 countries have at least doubled since 1980, according to a study.

This further highlights the need for healthier options and supplements, along with exercise and better eating habits.

RPNRF: Argus Research Initiates Coverage

On September 11th, Rapid Nutrition announced that Argus Research has initiated analyst coverage on the company. The market research firm notes that the company is well-positioned to "establish a robust foothold in its target markets, driven by product differentiation, distribution, and marketing," according to Argus.

Argus Research also breaks down Rapid Nutrition's earnings for the twelve-month period ending June 30, 2018. During the twelve-month period, the company reported earnings per share of $0.04 (0.033 GBP) and revenue of $3.1 million (2.4 million GBP). Rapid Nutrition's June 2018 revenue results showed growth of 27%, compared to the same period in 2017. "The company ended 2018 with 4 million GBP in current assets compared with current liabilities of 932,000 GBP. At a current ratio of 4.3x, the company appears to be on solid footing and we expect it will be able to move forward with its growth strategy," according to the market research firm.

Overall, Rapid Nutrition continues to execute on its vision of a global footprint with its natural and organic health supplements. The world continues to face dire straits when it comes to weight, and it is continuing to cause people to re-evaluate their lifestyle in order to improve health. Unlike other health supplements, Rapid Nutrition's supplements are all comprised of natural or organic ingredients, which helps give piece of mind to consumers, who are becoming increasingly aware of the need for cleaner, healthier alternatives.

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