The Hydroponics Company Limited (ASX: THC) has announced that first quarter revenue in its wholly owned subsidiary Crystal Mountain/Dragon Vision increased by more than 22% year-on-year to over $1.11m.
The increase in revenue was attributed to an increase in the company’s new product range over the past 6 months. THC has commenced its US market expansion and is poised for growth with increased distribution and with the introduction of additional new products later this year.
THC’s Chief Executive Officer, Hamish MacDonald, said: “Starting the year with a solid revenue base of more than $1.11m for the first quarter of 2017, is an excellent foundation for growth of THC’s hydroponics division, which is now well on target to achieve its forecast of over $5m revenue for 2017.”
Jay Colquhoun, THC’s Director of Manufacturing and Sales for the hydroponics division, said:
“Being part of THC and being a public, diversified company will allow many opportunities that were not possible as a private business. Having the backing and support of THC will allow exponential growth for the hydroponics division and will allow a significant expansion of our customer base in 2017, including new markets in Europe and the United States.”
THC is expanding into new markets where there are compelling opportunities to develop the THC as a leading manufacturer and distributer of hydroponic equipment and products. The United States is an important market for the planned roll out of new and existing products and will offer high potential to significantly increase revenue.
THC marked the beginning of its expansion in the United States with attendance at the 5th Annual Indoor Ag Conference in Las Vegas, US on 3-4th May. Jay Colquhoun added: “The Las Vegas Indoor Ag Conference was an excellent forum for THC to establish new business leads for our products, including lighting and electrical equipment, processing equipment and growing mediums.”
The Indoor Ag Conference is a two-day event that was established in 2013, bringing together leaders in farming, supplier, technology and customer sectors with a focus on indoor agriculture for start-ups through to larger multinational companies.
The global event included more than 700 participants and provided multiple opportunities for THC to expand its distribution within the United States market. THC promoted its range of new products and technologies, and has increased its sales pipeline with a number of interested potential customers making enquiries.
Presently, THC’s hydroponics division supplies more than 90% of retail stores in British Columbia, Canada. THC is now targeting large scale distribution and branding of its products in the United States, in line with plans to become a leading global manufacturer and distributer of hydroponics equipment and products.
The Hydroponics Company made its debut on the ASX on the 4th May 2017 via an IPO after having successfully raised $8m in capital at $0.20 per share.