Food Revolution Group Ltd (ASX:FOD) had a strong half-year with a 24 per cent increase in gross revenue to $22.21 million compared to $17.96 million from the corresponding period of 2019.
During the six months to December 31, the company’s profit improved by 102 per cent to $32,022 as against a loss of more than $1.78 million in the comparable period.
The uplift in revenue was driven by strong sales volumes as well as the impact of the price increases for the OBL product range announced in September 2020.
FOD believes the strong gross sales growth reflects growing consumer demand for fresh and healthy juices (especially oranges) with increased importance on vitamin-enriched and functional beverages to help build the immune system.
A product campaign with Woolworths has also shown positive results to drive consumer choice for OJC Quenchers during the peak summer period.
Strategy for next six months
The company will continue to focus on identifying and executing operational performance initiatives.
It has increased production throughput at the Mill Park facility, reduced waste, lowered overall labour costs and driven significant operational efficiencies.
FOD will execute several measures to reach its ambition of being a leading provider of beverages, functional foods, nutraceuticals and wellness supplements that improve the quality of consumers lives in the use of all-natural ingredients.
Enhancing EBITDA position
The company is committed to the continued pursuit of operational excellence and expects to continue to improve efficiencies in coming periods which will continue to enhance its EBITDA position and overall financial performance.
FOD’s balance sheet has the flexibility to increase the profile of its Original Juice Co and Juice Lab products as well as deliver new product range to the market in coming periods to drive further growth.