Fiji Kava (ASX: FIJ)
Fiji Kava (ASX: FIJ) ("Fiji Kava", the "Company") an Australian-Fijian medicinal kava health & wellness company with operations in the USA that produces natural products for the health and wellness market, submits the following Appendix 4E Preliminary Report for the Financial Year ending 30 June 2022 ("FY22").
Financial Highlights
- Positive sales momentum continues with record annual revenues of $2.09m, an increase of 79% from the prior corresponding period (FY21: $1.17m)
- Cash receipts from customers rose to $1.93m, an increase of 115% vs the prior corresponding period (FY21: $895k)
- Significant revenue growth in the USA, highlighted by more than 250% growth in sales through Amazon vs FY21 and the addition of the Danodan business unit
- FY22 statutory net loss of $5.4m reflecting significant investments made in brand marketing, entry into the USA and the Australian drinking kava markets, building inventory to underpin future growth, reduce manufacturing costs and streamline logistics
- Implementation of a wide range of cost saving initiatives are expected to significantly reduce FY23 costs in preparedness to expedite functional beverage growth in the US market
- Successful capital raisings throughout the year to support growth including the Danodan Hempworks and US Patent 10,716,819 acquisition, Fiji facilty expansion and kava inventory build and establishment of The Calmer Co. USA
Operational Highlights
- Strategic partnership formed with Network Nutrition, part of IMCD Group, for business-to-business sales of Kavaton® Extract in the USA, and expanded to include Canada, ASEAN, Australia and New Zealand
- Strategic partnership formed with leading pharmacy retailer Chemist Warehouse in Australia for distribution of Noble Kava®, Noble Sleep®, Noble Body® and Noble Calm® capsules
- National rollout of 50g drinking kava in Coles supermarkets nationally to complement existing distribution of the Noble Calm® and Noble Sleep® capsules
- Establishment of The Calmer Co. USA corporate brand, USA Board of Directors and Advisory Board plus appointment of Brian Cassuto, as Managing Director
- Acquisition of Danodan Hempworks LLC and Danodan Hempworks and US Patent 10,716,819, for the production of liquid dispersible CBD extracts
- Upgrade of the Fiji Kava extraction and drinking kava processing facility to increase production capacity allowing for processing of up to 300MT of Green Kava per annum
- Production and sourcing partnership with KaiMing Agricultural Processing in Navua, Fiji, including the expansion of activities to include kava, ginger and turmeric juice production • Formalisation of social impact activities and raw material sourcing through the iTaukei Trust Fund Board ('TTFB') in Fiji and tripartite agreement with Tutu Agricultural college in Taveuni
- Establishment of eight regional hubs for sourcing of Green Kava including two commercial supply agreements
- eCommerce launch of Noble Kava®, Noble Sleep®, Noble Body® and Noble Calm® capsules on Alibaba's Tmall and Fiji Kava Tea range; Noble Calm® Tea, Noble Sleep® Tea and Noble WellnessTM Tea on Amazon USA
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