RooLife Group records 183% improvement across full-year financial metrics
E-commerce and digital marketing company RooLife Group (ASX: RLG) has rounded out the 2021 financial year with its main financial metrics all jumping 183% on amounts recorded in the previous corresponding period.
The company’s revenue and income streams hit $9.61 million and are expected to be topped up by $510,000 in deferred payments which are due in the new financial year.
Cash receipts for the period totalled $9.38 million, while trade receivables and payables were $1.04 million and $840,000 respectively.
During the year, RooLife developed and delivered its technology stack, connecting brands and producers directly to customers.
It experienced high demand for its products driven by COVID-19 travel restrictions, the evolution of online shopping and the demand for fresh food and health products.
The investment in technology, business development, marketing and product selection through the reporting period has been cited as key to a growth in product sales and revenue with the benefits expected to continue into the new year.
RooLife is currently working on the planned launch of more direct-to-consumer online stores and hopes to continue its global expansion with a view to delivering profitable returns in 2022.
Ongoing investment in these initiatives during the reporting period was reflected in an operating loss of $4.99 million, which included $1.87 million in non-cash items such as impairment costs now (and not carried into 2022 and beyond), thereby reducing expenses.
RooLife closed FY 2021 with cash at bank of $3.81 million and in July, received an additional $1.7 million in funds from a private placement to further strengthen its balance sheet.
In the placement, RooLife issued 74 million new fully paid ordinary shares to Mega Holdings Pty Ltd, allowing it to expand its business model into China faster than initially planned.
RooLife is a cross-border platform which matches Chinese consumer demand with international brands and products.
The company identifies consumer trends, secures the distribution rights for suitable international products, and provides the technology and sales infrastructure needed for brands to sell at scale.
Its services include market research and data analysis; online and offline business-to-customer and business-to-business sales channel management; product localisation, brand and marketing development; international and local logistics, warehousing and shipping; and payment acceptance and remittance.