- Fiji Kava (FIJ) has released its preliminary annual results showing its revenue shot up 320 per cent, while its statutory loss reduced over FY20
- The health and wellness company’s revenue totalled $766,496 at the end of the 2020 financial year, up from $182,537 in FY19
- The company ended the financial year with a net loss of $3.8 million, however, it’s less than the $4.8 million loss recorded in the previous year
- As of June 30, Fiji Kava had $1.43 million in cash in the bank and no debt
- While since the end of FY20, the company has announced several significant deals
- Shares in FIJ are trading steady at 22.5 cents each
Health and wellness company Fiji Kava (FIJ) has released its preliminary full-year FY20 results, showing an increase in revenue and a decrease in statutory net loss.
The noble kava producer said FY20 was a record year for revenue, which increased by a huge 320 per cent to total $766,496, up from $182,537 in FY19.
The increase in revenue is being attributed to the Pathway International agreement, as well as the launch of its Noble Kava capsule product range in Coles supermarketsacross Australia.
Fiji also managed to reduce its statutory net loss by 21 per cent, from $4.8 million in FY19 to $3.8 million in FY20. This is despite the company spending 154 per cent more on employment costs across the financial year.
As of June 30, Fiji had $1.43 million worth of cash in the bank and no debt. However, the company did finish the 2019 financial year with slightly more in the bank – around $2.3 million.
The noble kava producer also burnt more cash over FY20, with $3.5 million spent on operating costs compared to $2.2 million in FY19. But, there was a 46 per cent decrease in operating costs in Q4, compared to Q3, as the company implemented cost-cutting measures.
Speaking on today’s results, Fiji Kava Founder and Managing Director, Zane Yoshida, said his goal over FY20 was to launch into mass-market retailing – which he achieved.
“We finished FY20 having realised our immediate strategic goals and successfully secured a number of initial cornerstone retail and distribution agreements that will underpin our future commercial success,” he said.
The Fiji Kava Founder also explained that the Coles deal wasn’t signed until the end of the financial year, meaning those sale results aren’t included in these results.
“As expected, the company’s financial performance reflected the initial capital required to build our vertically integrated supply chain and other investments for growth, including a doubling of our employee base, while the timing of many key commercial partnerships was heavily skewed towards the end of the financial year,” he added.
Since the end of FY20, Fiji has signed a significant deal with vitamin-giant Blackmores, to have its noble kava used in its subsidiary BioCeuticals’ Clinical AnxioCalm product.
It also signed a deal to launch into the Chinese market, furthering its market exposure and revenue potential.
Shares in FIJ ended the day trading steady for 22.5 cents each.