Bod continues strong growth and expands distribution footprint into China
Quarterly revenue of ~$300,000 booked to date with additional revenue expected – increase of circa 130% on Q1 FY2018
International market expansion commenced – orders through Daigou relationships received with further sales growth expected near term
Distribution footprint now over 800 doors. Increase of ~470 new doors during Q2 – additional banner group agreements imminent
R&D tax rebate of $276,000 received during the quarter
Additional products and SKU’s within existing portfolio to be rolled out early CY2018
Sydney, Australia – 13 December 2017: Developer and distributor of natural, evidence-based cosmetics and natural medicines, Bod Australia Limited (“Bod” or the “Company”) (ASX: BDA) is pleased to provide an update on its significant growth throughout the current quarter.
The Company is pleased to advise that it has booked approximately $300,000 in revenue to date, an increase of around 130% from the previous Quarter (Q1 FY2018: $130,000) and a surge of approximately 400% since Q4 FY2017 (Q4 FY2017: $60,000). The Company also expects revenues to increase further as invoices are calculated during December 2017 and looks forward to updating the market as these figures become available.
This surge in revenue can be attributed to an expansion of the Company’s domestic distribution channels, recent additions to Bod’s evidence-based, natural medicines and skincare products, and the commencement of international sales via key Daigou relationships.
During the quarter, Bod has received initial product orders from Daigou’s that open up the China export market. The Company is negotiating with a number of parties to increase sales into lucrative Asian markets and looks forward to updating shareholders on its progress in the near term.
Since September 2017, the Company has increased its distribution footprint by an additional 470 new doors. Bod now has access to approximately 800 individual stores, pharmacies and shopping centres through leading organisations such as Australian Pharmaceutical Industries (API), Romeo’s IGA, Alpha Inflight Services, selected Priceline Pharmacies and Blooms Pharmacies. The Company remains in ongoing discussions with a number of additional banner groups and aims to expand distribution channels further throughout 2018.
To support the Company’s ongoing research and development initiatives around medicinal cannabis, Bod has received a $276,000 R&D tax rebate. The Clinical Trial design is currently undergoing an extensive review by Bod’s medicinal Advisory Board to determine ways in which the length and cost can be reduced. The Company anticipates an update on this review to be made available shortly.
Bod Australia CEO Jo Patterson said: “We are pleased to deliver another surge in sales and revenue during the current quarter. We have witnessed significant growth driven by an expansion of the Company’s product portfolio, a significant increase in our distribution channels and the entry into lucrative international markets through key Daigou relationships.
“The Company remains focused on prudent financial management and expects its cash position to remain above $2 million at the end of the quarter.
“We look forward to updating shareholders on all operational progress in the coming weeks as we continue our rapid growth in FY2018.”
BDA Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
