RooLife achieves fourth consecutive quarter of record revenue, growth to continue
During Q1 FY2022, RooLife generated $4.25 million in revenue, which was 353% higher than the previous corresponding period.
Digital marketing and e-commerce company RooLife Group (ASX: RLG) has achieved its fourth consecutive quarter of record revenue – closing out the September period (Q1 FY2022) with a strong financial position to continue driving growth.
For Q1 FY2022, RooLife generated $4.25 million in revenue which was a 353% rise on Q1 FY2021’s figure of $939,000.
The period also heralded a 33% improvement in earnings before interest and tax, which was a $355,000 loss compared to a larger loss of $530,000 in Q2 FY2021.
Moving towards profitability
RooLife anticipates its strong sales performance will continue improving throughout FY2022.
The company’s revenue mix is progressing from marketing service fees to scalable product sales, which it says validates its vision of being the bridge between global suppliers and Chinese consumers via its platform.
“Initial investment in sales channels is already seeing rapid revenue growth and increased sales efficiency as RooLife continues to add new online stores and distribution channels,” the company stated.
Underpinning RooLife’s move towards profitability is its cash balance of $2.2 million plus a further $1.2 million that has been received in prepayment and deposits.
The company also has $1.35 million-worth of inventory and receivables (net of liabilities).
Digital marketing and e-commerce business
RooLife has established a platform to manage the sale of food, beverages, health and wellbeing products into China.
It says the platform connects global producers and brands directly to consumers.
RooLife facilitates transaction control for sellers via its cloud-based operational dashboard with real-time visibility of inventory, consumer purchases and preferences. It also provides sales data and other business intelligence.
Sales are managed from order to buyer through direct-to-consumer online store integration.
During Q1 FY2022, RooLife operated and delivered more than 60 unique social/e-commerce/direct-to-consumer sales engagement events across multiple platforms for its brands and products.
Food store launch
Last month, RooLife launched its direct-to-consumer food store. As part of the launch, RooLife’s database of social media influencers was used along with key social e-commerce platforms.
RooLife’s food store connects farmers and distributors with consumers through an interactive shopping experience.
It also allows group buying and social shopping where users can share their purchases on social media and form a team to achieve a lower purchase price.
This has the added benefit of driving sales volumes for RooLife, which is already achieving strong growth from the first product line launched in the store.
Over the coming months, the range of available products will be expanded.