RooLife’s (ASX:RLG) high-growth strategy powers 39% revenue spike in March quarter

Highlights

• RooLife Group Ltd (ASX:RLG) has reported a robust March quarter marked by a decent spike in revenue.
• Revenue grew to AU$4.7 million, an increase of 39% over the corresponding quarter in FY21.
• Continued investment in expansion of online assets in China and other markets are expected to deliver first sales in the coming quarter.

New Market Specialist RooLife Group Ltd (ASX:RLG) has reported outstanding results for the quarter ended 31 March 2022. The e-Commerce and digital marketing company’s performance has been buoyed by continued its high growth strategy and rapid expansion. It has resulted in revenue boost despite supply chain delays, development of RLG’s systems and launch of additional direct-to-consumer online stores.

RLG’s technology and services platform sells food, beverages, health, and wellbeing products matching consumer demand with businesses and producers, seeking to enter and sell into growth markets. The Company has international clientele from Australia, New Zealand, the US, Europe, the UK and South America.

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Let numbers do the talking!

Despite recent global challenges, RLG has been poised to continue its growth and expansion driven by a growing global customer base to drive it towards profitability. RLG has been witnessing strong consistent revenue growth on the back of new products and online stores. Impressive numbers from the March 2022 quarter prove that the Company’s momentum has been in the right direction-

• Revenue grew to AU$4.7 million, an increase of 39% over the corresponding quarter in FY21 (Q3FY21 AU$3.4 million) and a 22% increase on the immediate prior quarter (AU$3.85 million for December 2021).
• Year-To-Date revenue was AU$12.8 million, which represents 133% of full-year revenue achieved for FY21 (AU$9.6 million) with 3 months remaining in the financial year.
• Cash receipts amounted to AU$4.82 million for the quarter.
• RLG closed the quarter with cash of AU$3 million plus receivables (net of liabilities) and prepayments to deliver future revenue totalling AU$1.5 million plus inventory, demonstrating strong working capital position of AU$5 million.
• RLG issued 7.2 million fully paid ordinary shares to employees and contractors in recognition of their contribution towards the 1H22 performance, provided in lieu of cash payments.
• 3 million Performance Rights were issued under RLG’s shareholder approved Incentive Performance Rights Plan.

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Key milestones

RLG continued its high growth strategy and rapid expansion across the March 2022 quarter. The e-commerce and digital marketing company achieved many milestones despite supply chain delays globally, including in China.

The Company has continued to focus on its technology, business development, marketing, and product selection. This has powered the growth in product sales revenue, achieved so far this year. Additionally, RLG continues to launch additional direct-to-consumer online stores.

China

RLG has tapped products in demand and the preferred platforms for engagement with online shoppers. This led to the development and launch of new stores on popular online sales platforms in China including TikTok/Douyin and Pinduoduo, in addition to Alibaba’s Tmall environments.

Notably, RLG continues to monitor the current COVID-related lockdowns in China. Logistics delays indicate that expected revenue in Q422 is likely to be in line with Q322.

Australia

The Company received first sales receipts on Australian wool garment producer Merino & Co during the March quarter. It has built and rolled out its direct-to consumer marketplace, launching with wines after the end of the quarter. First revenues from the RLG Wine Marketplace - BestWineDeals.com.au, are expected in Q422 with more products to follow.

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New Corporate Advisory Services provider

In the March 2022 quarter, the Company appointed Novus Capital Limited for corporate advisory services. This is likely to market and promote RLG to potential investors and new shareholders in Australia and overseas.

All in all, RLG continued investment in the expansion of its online assets in China and other markets, which are expected to deliver first sales in the coming quarter, further expanding the range of products sold and revenue lines.