Join our daily newsletter At The Bell to receive exclusive market insights
- RooLife (RLG) has partnered with AFT Pharmaceuticals (AFP) to deliver an online health and pharmacy store in China
- The deal will see RooLife take care of digital marketing, eCommerce operation and sales for AFT’s portfolio of health and wellbeing products
- The agreement will further expand RooLife’s sales footprint in Asia’s biggest economy, with the company now selling products from Australia, New Zealand, the U.K. and the U.S.
- The deal is slated to be worth around $2.2 million over three years if sales targets are met, meaning RooLife has signed on around $6 million in contract revenues since March this year
- The company is reporting revenue growth of 380 per cent over the 2020 financial year, and the new AFT partnership marks a great start to FY2021
- RooLife Group is trading 50 per cent higher today, with shares priced at 3.3 cents
RooLife (RLG) has partnered with New Zealand company AFT Pharmaceuticals (AFP) to deliver an online health and pharmacy store in China.
The deal will see RooLife take care of digital marketing, eCommerce operation and sales for AFT’s portfolio of health and wellbeing products.
Big market
The agreement will further expand RooLife’s sales footprint in Asia’s biggest economy, with the company now selling products from Australia, New Zealand, the U.K. and the U.S.
The deal is slated to be worth around $2.2 million over three years if sales targets are met, meaning RooLife has signed on around $6 million in contract revenues since March this year.
The increased contract value is already being reflected on the company’s bottom line, with revenues of over $1 million during the challenging June quarter — an increase of 25 per cent compared to the prior quarter.
Growing base
The AFT Pharma partnership will further expand RooLife’s revenue streams on Alibaba’s Tmall and Alipay’s platform. Health products are expected to be in strong demand, and the fact they come from COVID-free New Zealand will likely add to their allure.
RooLife Managing Director, Bryan Carr, says the company’s footprint is expanding.
“Working with AFT Pharmaceuticals to market and sell their well-known, trusted portfolio of health and wellbeing products in the Chinese market under the Kiwi Health banner is an attractive growth opportunity for RooLife,” Bryan said.
“We have seen the successes achieved by large Australian and NZ-based pharmacy chains online in China and we are excited by the opportunity available with AFT Pharmaceuticals’ range of products, leveraging the high regard for New Zealand and its products with Chinese shoppers,” he added.
The deal also marks RooLife’s third Tmall store appointment and launch secured in the last four months, further adding to an ever-growing revenue base.
The company is reporting revenue growth of 380 per cent over the 2020 financial year, and the new AFT partnership marks a great start to FY2021.
It seems RooLife is coming along in leaps and bounds.
RooLife Group is trading 50 per cent higher today, with shares priced at 3.3 cents as at 11:15 am AEST.
