RooLife Group posts increased revenues underpinned by high-growth business strategy
In FY 2021 year-to-date, RooLife has achieved $5.7 million in revenue – up 68% already on FY 2020 with the June quarter remaining to be included.
E-commerce and digital marketing company RooLife Group (ASX: RLG) continued delivery of its high growth business strategy during the March quarter, growing its product sales revenue by 39% to $4.7 million from $3.4 million in the previous corresponding period.
The increase also represented a 22% jump on revenues reported for the three months to December 2021, which totalled $3.85 million.
It brings RooLife’s year-to-date revenue to $12.8 million which represents 133% of the $9.6 million in revenues achieved for the 2021 financial year.
Cash receipts of $4.82 million were also up by 166% on the previous corresponding quarter’s total of $1.8 million.
The company closed the quarter with cash of $3 million plus receivables (net of liabilities) and pre-payments to deliver future revenue totalling $1.5 million plus inventory, providing it with a strong working capital position of $5 million.
Business focus
RooLife attributed the quarterly revenue growth to its focus on technology, business development, marketing and product selection as it continues to launch new direct-to-consumer online stores in addition to TikTok/Douyin, Pinduoduo and Alibaba’s Tmall environments.
It said the improvements were achieved despite supply chain delays globally, including in China, which impacted its ability to service strong and growing product demand.
The company has been investing in the development of its systems to connect health, food and lifestyle products and brands with the world’s fastest growing consumer markets online.
TikTok store
RooLife’s TikTok store was officially launched this week to market and sell cross-border international products using short video content, advertisements and live-streaming campaigns.
It will promote products from global brands such as Dior, Lancôme, Givenchy and Estee Lauder to China’s online community of more than 600 million shoppers and is expected to start generating first revenues in the June quarter.
RooLife posted an operating cashflow loss for the March quarter of $666,000, resulting from $119,000 being applied towards refundable store deposits for some of its new online stores.
The stores are expected to provide revenue contributions in future reporting periods.