Strong sales growth drives Holista’s (ASX:HCT) record customer receipts in 1Q

4 min read | May 05, 2022 10:13 AM AEST | By Manisha

Strong sales growth drives Holista’s (ASX:HCT) record customer receipts in 1Q — Image source: © Alexmillos | Megapixl.com

Record high customer receipts in Q1 FY22

Holista achieved total sales of AU$2.7 million in the March quarter, up 42% year-on-year. On the back of the impressive sales growth across divisions, the company posted record customer receipts of AU$2.4 million. The figure represents an increase of 34% over the previous corresponding period (pcp) and a rise of 17% quarter-on-quarter (QoQ).

Image source: HCT update

ALSO READ: Holista Colltech (ASX:HCT) records strong sales across all divisions in Q4

Major developments across divisions in March quarter

Health Supplements Division
The strong demand for Holista’s market-leading supplements and vitamins triggered massive growth of 31% in the sales of these products. Total revenue from the division was recorded as AU$1.9 million for the quarter.

Aiming higher revenue from its Health Supplements division, the company is looking forward to launch In2Bloc, a natural sugar and starch blocker, in the current quarter.

Food Ingredients Division
The March quarter sales for Holista’s Food Ingredients Division went up to AU$617,000, 79% higher on pcp. The strong sales performance was mainly driven by surge in demand for the unique GI Lite^TM and 80LESS^TM products from the company’s US bread distributor Costanzo’s and Malaysian-listed drinks manufacturer Rex Industry Berhad.

Holista received its first commercial order worth AU$43,000 from Country Farms for its GI Lite^TM and sugar reduction substitute 80LESS^TM. These products will be used by Starbucks Malaysia and sold into Country Farms’ trade network spread across Malaysia. Negotiations are underway for a long-term sales contract to support the ongoing listing of the company’s products in Country Farms’ wholesale food catalogue that would fulfil the increasing demand from Starbucks Malaysia.

Ovine Collagen Division
Revenue from Holista’s Ovine Collagen Division was recorded at AU$122,000, marking an increase of 64% on pcp. The sales growth was a result of growing orders from cosmetic manufacturer Behn Meyer.

Do read: Big upside in 2022 for Holista Colltech’s ovine collagen in buoyant skincare market

Infection Control Division

The successful launch of the company’s proprietary technology Super Bio Nano Silver disinfectant aided the performance of this division. The quarter saw more than doubling in the division’s sales value to AU$18,000.

Read More: Holista’s (ASX:HCT) all-natural disinfectant kills 99.99% of human coronavirus strain, confirms test

An independent test was conducted by SGS (Malaysia) during the quarter on Super Bio Nano Silver. The test results suggest that Holista’s innovative product kills 99.99% of the human coronavirus (ATCC VR-740) strain after 30 minutes at a concentration of 150 parts per million. The test results make the product eligible to be used for hard surface mass sanitisation.

Currently, Super Bio Nano Silver disinfectant is being sold by Malaysian distributor called Bamboo Earth Sdn Bhd. Discussions are underway to align the product for region market distribution.

A bright pathway ahead…

With incredible performance in the first quarter of the ongoing fiscal year, Holista is poised to move forward in FY22 with a positive outlook. Besides, several post-pandemic global trends such as increased preference for ecommerce, healthy lifestyle and sanitation are likely to contribute to higher sales of the company’s products and strengthen its position in the market.

ALSO READ: Which health & wellness trends are paving success path for Holista Colltech (ASX:HCT)?

HCT shares last traded at AU$0.039 on 2 May 2022 with market cap of AU$10.73 million.

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