RooLife Group delivers third consecutive quarter of record revenue
For FY 2021, RooLife’s full-year revenue was an all-time high of around $9.6 million.
Australia-based e-commerce and digital marketing company RooLife Group (ASX: RLG) has delivered its third consecutive quarter of record revenue with $3.9 million achieved for the three months to June.
This record revenue was attributed to increased product sales to Chinese consumers and contributed to an all-time high full-year revenue of approximately $9.6 million.
The $3.9 million for Q4 2021 represents a 15% increase on the previous quarter’s revenue, while the $9.6 million is 182% higher than the $3.4 million from the previous full year (FY 2020).
For Q4 2021 cash receipts of $5.52 million were collected – consisting of $5.41 million from customers and $114,000 from government grants associated with RooLife’s export activities.
RooLife Group revenues have significantly increased in Q3 and Q4 of the 2021 financial year.
RooLife managing director Bryan Carr expects the strong sales performance to continue into the new financial year supported by a solid balance sheet and cash at hand at end June of $3.85 million.
“RooLife’s revenue mix is increasingly progressing from marketing services fees to scalable product sales, validating [our] vision of being a platform between global suppliers and Chinese consumers,” he said.
“[Our] initial investment in sales channels is already seeing rapid revenue growth and increased sales efficiency.”
High-quality products
RooLife allows a growing number of brands from Australia, New Zealand, Europe and North America to sell high-quality products to Chinese consumers based on their profiles and purchase preferences.
The company continues to leverage its developing expertise and hyper-personalisation artificial intelligence (AI) technology to help increase its sales and improve financial efficiencies.
Higher sales and financial efficiencies helped reduce administrative, corporate and staff costs, and advertising and marketing expenditure for the June quarter.
Payments relating to staffing totalled $726,000, representing a reduction of 10% from the previous quarter and followed a 20% decrease in staff costs for the three months to March.
Fees paid to non-executive directors amounted to $30,112 while fees paid to executive directors totalled $116,875.
Administrative and corporate costs were lowered by $220,000 or 4% from the previous quarter.
Advertising and marketing expenditure was $352,000 or 2% lower than the previous quarter, with RooLife reaping the benefits of an investment in sales and marketing initiated in March.
New distribution contracts
Following the close of Q4 2021, RooLife secured two distribution rights contracts to market and sell Remedy Drinks International and Amie Skincare products in China.
Remedy is Australia’s premier kombucha brand with sales in Australia, New Zealand, the United Kingdom, United States, Canada and parts of Asia.
Under the terms of that agreement, RooLife will manage and operate e-commerce platforms in China to support and drive Remedy’s sales and distribution activities over a three-year period subject to sales and performance milestones.
The agreement has a minimum revenue target for RooLife of $5 million if sales targets are met.
“With strong and growing demand for healthy foods in a market the size of China, we see great potential for Remedy drinks and we are delighted to be partnering as the exclusive distributor,” Mr Carr said.
Beauty and wellness deal
Amie is produced by UK beauty and wellness company and RooLife partner SLG Brands.
The marketing and distribution deal was based on the performance of RooLife’s success with SLG’s COLAB dry shampoo range, which commenced sales to China in May.
COLAB is sold in 37 countries and has been well-accepted by the market as an internationally-known brand with a good reputation.
Mr Carr said continued contract wins would strengthen RooLife’s cross-border product offering to China, where three out of every four customers engage in online shopping.