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- Medicinal kava company Fiji Kava (FIJ) has reported a 144 per cent increase in revenue for the September quarter compared to Q1 FY20
- Fiji Kava specialises in noble kava products which help to improve sleep, calm nerves and support muscle relaxation
- Over the quarter, the company signed several contracts including a partnership with the Pacific Horticultural and Agricultural Market Access Plus Program and a licence agreement with Blackmores’ subsidiary, BioCeuticals
- FIJ also secured Shanghai-based, PuMate, to exclusively distribute its noble kava products across China
- These agreements complemented existing deals with Coles in Australia, Green Cross Health in New Zealand and Amazon in the U.S.
- Despite facing COVID-19 delays, interim CEO Nicholas Simms says the set backs don’t diminish the opportunity to build awareness of noble kava’s benefits
- In September, Fiji Kava raised $4.58 million through a placement and ended the quarter with a healthy $4.65 million in cash
- Company shares have dropped 21.8 per cent to trade for 21.5 cents
Fiji Kava (FIJ) achieved $164,249 in revenue for the September quarter which is a 144 per cent increase on Q1 FY20.
Fiji Kava is an Australian-Fijian health and wellness company which specialises in natural noble kava products. It’s noble kava capsules and supplements help to improve sleep, calm nerves and support muscle relaxation.
As of June this year, the products became available in hundreds of Coles stores across Australia. Since the launch, demand has continued for Fiji Kava’s ‘Sleep’, ‘Mind’, and ‘Body’ capsule ranges.
All in all, the first quarter of the 2021 financial year yielded positive sales and consumer demand from eCommerce channels. This includes $46,300 in revenue – a 60 per cent increase on Q4 FY20 and a 627 per cent increase from Q1 FY20.
The September quarter was a period of considerable growth as it saw Fiji Kava sign new partnership and distribution agreements.
Notably, the ASX-lister partnered with the Pacific Horticultural and Agricultural Market Access (PHAMA) Plus Program to boost sustainable production and distribution of kava from Fiji as well as design and install commercial kava nurseries.
Fiji Kava also celebrated a 43 per cent surge in its share price when it inked the news of a licence agreement with Blackmores’ (BKL) subsidiary, BioCeuticals. The agreement saw BioCeuticals licence the use of FIJ’s noble kava extract for its BioCeuticals Clinical AnxioCalm product.
Soon after, Fiji Kava announced securing an exclusive distributor agreement with Shanghai-based PuMate. PuMate has significant experience with selling international food ingredients and nutritional products, including those produced by Bubs Australia, in China.
This marked an exciting win for the company as it would allow its noble kava products to be sold in China which has the second-largest vitamin and supplement market in the world.
The recent agreements complemented the discretionary stock’s existing deals with Coles, Green Cross Health in New Zealand and Amazon in the U.S.
“Together, these deals have been key to the company’s sales growth of 144% from the prior corresponding period,” Interim CEO Nicholas Simms said.
To support this growth, Fiji Kava invested in a new social media strategy which delivered a staggering 6596 per cent increase in impressions and a 674 per cent increase in consumer engagement over the quarter. As a result, its online community grew by 583 per cent.
While the company celebrated a lot of achievements, like many others, Fiji Kava faced operational disruptions to its supply chain as a result of COVID-19. Specific set backs include delays in customs clearances, testing bottlenecks and constraints of available freight which impacted kava exports from Fiji.
“Importantly, these logistical disruptions do not diminish the long term opportunity to build awareness of the benefits of Noble Kava, and the health and wellness role it can play in the everyday lives of today’s increasingly busy consumers in burgeoning markets including China and the United States,” Nicholas said.
It seems the company and its product offering has the support of new and existing investors who showed their support during a $4.58 million placement completed last month.
Fiji Kava said the money was being put towards financial flexibility and providing more working capital to support opportunities, product development and international growth.
Over the quarter, the company spent $226,000 on product manufacturing and operating costs, roughly $703,000 on admin and corporate, and staff costs, $126,000 on advertising and marketing and $43,000 on research and development.
At the end of the quarter, Fiji Kava had around 4.65 million in cash.
Company shares have dropped 21.8 per cent to trade for 21.5 cents at 2:22 pm AEDT.
