Quarterly Activity Report
Brisbane, Jan 28, 2022 AEST (ABN Newswire) - Fiji Kava Ltd (
ASX:FIJ) is a health and wellness company with operations in Australia, Fiji and the USA. The company, which produces natural products to reduce anxiety, promote relaxation, improve sleep and support sports recovery and performance, submits the following Activities Report and Appendix 4C Cash Flow Statement for the three-month period ended 31 December 2021 (Q2 FY22).
KEY HIGHLIGHTS
- Record quarterly revenue of $476,531 achieved in Q2 FY22, an increase of 11% from the priorperiod (Q1 FY22: $420k) and a 49% increase versus the prior corresponding quarter (Q2 FY21:$319k).
- Q2 Sales through Chemist Warehouse were up by 111% in Q2 vs Q1 with record sales inOctober and again in November. Similarly strong sales growth was seen in Coles nationally.
- First orders shipped to two new customer channels including Cross Border eCommerce, Chinaand Unique Health Products (Speciality Health Food Retail, Australia).
- Cash receipts were $152,822, however, $197,873 receivable for bulk kava sales in the B2B saleschannel had payment terms extended, owing to a 2-month delay due to logistics, customs andquarantine. Overdue payments totalling $176,654 were received in early January from othercustomers who were similarly impacted.
- The Calmer Co USA operations commenced, including the appointment of our USA ManagingDirector, Brian Cassuto and the USA Board of Directors was formally appointed.
- USA Sales growth via Amazon with Sales up by 44% in Q2 and record sales recorded inNovember for Fiji Kava products on Amazon in the United States.
Fiji Kava CEO, Dr Anthony Noble said: "Fiji Kava has taken further steps forward in maturing our business model and globalising our operations in Q2. Sales through our Australian retailers continue to grow strongly and are being supported by both trade promotional and brand marketing activities in key locations. We have made our first shipment to Unique Health Products and this should see both our OTC products and eventually drinking kava on the market through a new group of speciality stores across Australia."
"USA operations are now fully transferred to management by our team on the ground in The Calmer Co USA. Sales are growing through Amazon and the registration of our Taki Mai(R) trademark in the USA will allow us to open a dedicated Taki Mai shopfront on Amazon, further driving this growth. Our acquisition of Danodan Hempworks LLC was completed in January 2022 and the global team is working together to drive immediate impact for Danodan's sales through retail and DTC channels."
"Like many multinational businesses, shipping and logistics delays have impacted the delivery of our orders to customers, particularly those shipments made to IMCD in the USA in this quarter. We are grateful to IMCD's Ryan Gorman and his team who have worked with us constructively and patiently as we addressed these bottlenecks, which unfortunately exacerbated by AQIS and customs delays in Australia. As we are operating at a scale and quality level exceeding any other kava importers, we also saw some slower than expected delivery and clearance of our first 2MT of drinking kava, which is now in the process of final packaging, quality testing and release to market in Australia. We have bulk extract and drinking kava in process now in Fiji and Australia and 'on the water' to help mitigate any future delays, which have highlighted the importance of building and maintaining meaningful inventory levels across our value chain to manage such complexity."
"I am pleased that the team has recorded a second consecutive record sales results in this very challenging environment. The results do not include any drinking kava sales or pre-orders in Australia, functional teas range, which can be expected to contribute to our next quarter's results."
*To view the full report, please visit:
https://abnnewswire.net/lnk/T1S047ZP
About Fiji Kava Limited
Fiji Kava Limited (ASX: FIJ) is an Australian-Fijian medicinal kava health & wellness company, producing natural 'noble kava' products for the complementary and alternative medicine market, estimated to exceed USD $210 billion by 2026 globally. As the first foreign company with approval from the Fijian Government to operate in the kava industry, FijiKava has established a global leading sustainable and 100% traceable, certified organic supply chain of 'noble kava' including a nucleus farm in Levuka, on the island of Ovalau, Fiji.
FijiKava is focused on expanding the availability of noble kava products throughout western markets to provide a natural alternative to prescription medicines to promote sleep, soothe and calm the nerves, support muscle relaxation and relax the mind.
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