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Vmoto (ASX:VMT) Q1 sales provide “solid runway” for FY22 performance

ASX News, Consumer Discretionary
ASX:VMT      MCAP $29.72M
02 May 2022 11:40 (AEDT)

Vmoto's customers. Source: Vmoto

Vmoto (VMT) has reported a 36 per cent year-on-year increase in sales of its zero emission two-wheel vehicles during the March quarter.

The electric motorcycle company sold 7998 units in the most recent quarter which is a notable increase from the 7410 units sold in the December quarter.

Of the almost-8000 units sold, 7677 units (96 per cent) were international sales which marks a 35 per cent increase year-on-year.

The company said the sales were in line with its expectations and reflect the winter seasonal fluctuations across Europe and the Chinese New Year holiday in January and February 2022.

According to Vmoto, its brands and products are gaining further traction from distributors and consumers and it’s also experiencing a higher interest from new and existing distributors and consumers.

For example, Vmoto signed and renewed distribution agreements with international distributors in Paraguay, Morocco and Lebanon covering the warehousing, distribution and marketing of its electric two-wheel vehicle range.

Positively, the business-to-consumer (B2C) distributors are expanding their retail presence with the opening of Vmoto’s Soco flagship stores and corner shops in the Philippines and Romania.

Further, the vehicle manufacturer and distributor has been in discussions with a number of potential B2C and business-to-business distributors and customers around the world.

With this, VMT expects sales will continue to increase with repeat orders from existing customers as well as new orders from new international customers.

As of March 31, 2022, the company had firm international orders for 9116 units of its electric two-wheel vehicles which it says provides a “very solid runway” for FY22 sales.

Vmoto ended the three-month period with a strong cash balance of $24.7 million which has since increased by $6.1 million, largely a result of positive operating cashflows from customer receipts.

Company shares were up 4.49 per cent to trade at 40.8 cents at 11:40 am AEST.

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