Bod Australia receives record order for cannabinoid and hemp products
It’s been a busy week for Bod Australia (ASX: BDA) with the company following up its first UK MediCabilis prescriptions with news it had received a record $1.43 million purchase order from Health and Happiness Group to sell its cannabinoid (CBD) and hemp products.
Most of the order is for Bod’s CBD products including its soft gel capsules and oils and will be sold in the UK under the CBII brand.
The remainder of the order is for Bod’s products that will be launched in the coming months through new and established brands.
“A binding purchase order of this size clearly demonstrates Bod’s ability to deliver innovative consumer products that are aligned with the brand and consumer demand,” Bod chief executive officer Jo Patterson said.
“Further, it continues the upward trajectory in the company order pipeline that in turn will generate sales in both domestic and large international markets.”
“As more and more consumers connect with our trusted brands, we expect future purchase orders will naturally increase in size and value.”
Ms Patterson added the company was experiencing strong uptake of its products across all business divisions and had “a number of exciting initiatives pending” which are expected to drive sales revenue higher.
Bod has received roughly $3.9 million in binding purchase orders from Health and Happiness since October 2019, which includes products sold in Australia and the UK.
Of those orders, Bod has invoiced $1.26 million and is confident it will deliver the remaining order valued at $2.64 million before the end of the current quarter.
Bod noted the recently received orders will boost its revenue for the first nine months of the 2020 financial year to $3.4 million, which is 144% higher on the previous corresponding period.
First medicinal cannabis prescriptions in UK
Today’s record purchase order news follows Bod receiving the first prescriptions for its MediCabilis product in the UK.
The prescriptions came from one of the country’s leading medicinal cannabis clinics which has facilities in multiple locations throughout the UK.
“Our UK market entry has included rigorous patient and physician education initiatives, as well as collaborative work with our distribution partners to ensure we have the necessary infrastructure in place to scale operations rapidly,” Ms Patterson said.
She added she was “confident” demand for MediCabilis would grow in the UK and provide a springboard for Bod’s entry into Europe.