- Fiji Kava (FIJ) has recorded some strong results in its December quarterly report, including a 94 per cent increase in revenue
- The noble kava producer brought in over $319,000 over the three month period, compared to $164,000 during the September quarter
- Activities wise, the company successfully completed its first order with PuMate, marking its entry into the Chinese market
- It also signed a deal with Yuan Long Yato to potentially market and distribute more products in the region
- Additionally, Fiji recorded sales growth for its different kava products sold within Coles Supermarkets (COL)
- Fiji Kava ended Q2 FY21 with $3.37 million worth of cash in the bank
- Shares in FIJ are trading up 3.85 per cent at 13.5 cents each
Fiji Kava (FIJ) has recorded some strong results in its latest quarterly report, including a 94 per cent increase in revenue.
The noble kava producer brought in over $319,000 in revenue over Q2 FY21, up from $164,000 in revenue during the previous quarter.
When compared to Q2 FY20, the revenue growth was even more significant — increasing 96 per cent year-on-year.
Activities wise, it was a busy few months for the company which completed its first orders into China via its deal with PuMate.
Fiji Kava also signed a memorandum of understanding (MoU) with Shanghai-based Yuan Long Yato to potentially market and distribute more of FIJ's products in the region.
In addition to these developments, the company said Q2 saw sales growth for its multiple products being sold within Coles Supermarkets (COL).
FIJ sells its Fiji Kava Noble Kava Extract and three new noble Kava varieties of 'Sleep', 'Mind' and 'Body' capsules across hundreds of the Australian supermarket chain's stores.
Commenting on the December quarter's activities, Fiji Kava CEO Nicholas Simms said he is expecting more growth in the coming year.
"This has been a positive quarter for Fiji Kava with positive revenue and the announcements of material new agreements to grow the availability of our products globally," he said.
"While the nature of our business, the timing of new agreements and other external factors can result in short-term revenue fluctuations in any given quarter, we anticipate growing momentum over the medium to long-term," he added.
Fiji Kava ended Q2 FY21 with $3.37 million worth of cash in the bank, enough funding to keep the company going for another 2.62 quarters.
That's assuming its spend rate stays the same, with the company burning through $1.28 million during the December quarter.
Shares in FIJ are trading up 3.85 per cent following Wednesday's quarterly update at 13.5 cents each at 1:58 pm AEDT.