Roots Sustainable Agricultural Technologies Ltd (ASX:ROO) has tabled $163,000 in sales orders during the current calendar year, representing a 662% increase within a 12-month window.
This time last year, Roots reported $21,000 in sales orders in the first five months with the 2021 figure also marking a 100% increase on orders received during 2020’s second half.
ROO chalks the continued sales growth up to pilot trials it is conducting in Israel, a steady stream of repeat orders and new sales in international markets.
“Growth will continue”
Roots executive chairman and CEO Boaz Wachtel believes easing pandemic restrictions will pave the way for Roots’ future growth.
“Despite the challenging backdrop of COVID-19, Roots has managed to achieve strong sales growth across its customer base and as restrictions around international travel continue to ease, the company expects this trend to continue.
“Food security remains a major international issue and our RZTO technology has shown considerable advantages including shortening grow cycles, increase yield, energy savings and enhanced production security. To this end, we are very confident that growth will continue over the coming months.”
Multiple verticals
At its core, Israeli-based Roots seeks to develop and commercialise solutions that combat modern problems in the agricultural space.
Its flagship technology, the Root Zone Temperature Optimisation (RTZO), can protect the quality of agricultural crops by heating and cooling their roots with irrigation.
In March, Roots secured an order from a Puerto Rican cannabis farm for the RTZO system, worth more than $50,000. Previous test work indicated the technology triggered upwards of a 20% increase in cannabis plant yields.
More broadly, in recent years, Roots has tested the tech on protein-based plants, opening the door to the plant- and hemp-based meat industry, which is poised to reach US$14.7 billion in value by 2027.
On the horizon
Roots will execute a series of marketing initiatives in a bid to maintain its growth streak over the coming months.
Specifically, the company has set its sights on hosting exhibitions at large conventions and pursuing partnership deals.
In the meantime, it anticipates additional trials will translate to sales before the year’s end.