Chill Brands Group PLC (LSE:CHLL, OTCQX:CHBRF) said half-year revenues surged 230% on its last full year, adding it was undergoing “a remarkable journey of change and development”.
The maker of tobacco alternative products including CBD and tobacco-free nicotine hailed developments including attracting several leading executives in the global brands industry and buying the “unforgettable” chill.com internet domain name.
Since acquiring the website name last July, order volumes have increased steadily, the company said, and the average Chill.com customer spends at least US$40 per online transaction.
Convenience store sales have been “the cornerstone of the Chill Brands” business, it said, but the budding online business and the hiring of ex AB Inbev and Juul exec Michael Sandore as chief commercial officer earlier this month has led to a rethinking of the retail strategy.
Citing cost increases and capital commitments that are challenging even the largest consumer packaged goods conglomerates, the company said: “With the benefit of new intelligence and guidance, it has become clear that it is not in the best interests of the company or its shareholders to pursue the rollout timeline announced in February 2021.”
Current agreements and support will remain in place with the 2,500-plus retailers and distributors that already stock Chill products, it said, but under a new plan devised by Sandore the focus will be “not on one sales channel but on the wider goals of revenue generation and market penetration”.
On the outlook, co-chief executive officers Trevor Taylor and Antonio Russo said: “This is the moment at which Chill Brands matures into a focused and fully operational CPG company with aspirations to join the ranks of the world's largest brands.”
In the coming weeks they said the board will continue to build the business model “alongside an investment case that reaffirms the decisions of existing long-term holders and attracts new ones”.
Interim results showed revenues of £1.07mln in the six months to 30 September, up eighteenfold on the £54,554 in same period in 2020 and compared to £0.3mln in its last fiscal year.
An operating loss of £2.47mln was reported, compared to £1mln last time and £4.8mln for the last full year.
The balance sheet had £2.1mln of cash and equivalents at the half-year stage.