Vejii Holdings Ltd, an online retail and wholesale seller of plant-based and sustainable products, has released its first quarterly results since listing on the Canadian Securities Exchange in November.
In the three months ended December 31, 2021, the Kelowna, British Columbia-based company reported revenue of $938,404, compared to $25,441 in the same quarter of 2020. Full-year revenue was more than $1.7 million, compared to the same $25,441.
The jump can be attributed to ShopVejii.com having a full period of operation, as well as the acquisition of Veg Essentials LLC in October, which generated $606,249 in revenue, the company said.
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The acquisition also helped Vejii improve its ground delivery, which cut sales and distribution costs, the company said. Sales and distribution expenses were 106% of revenue in the quarter, compared to 561% in the fourth quarter of 2020.
"The fourth quarter shows significant improvements in unit economics and gross margins based on just two months of efficiencies gained from integrating with Vegan Essentials,” COO Darren Gill said in a statement.
The company also acquired VEDGEco during the fourth quarter, which Gill says will help the company achieve profitability. Following that deal, Vejii now has five warehouses in the US.
“With our planned initiatives and the additional scale [that] VEDGEco brings, we expect to continue seeing significant improvements on unit economics, gross margins, selling and distribution, and G&A as management focuses on demonstrating a clear path to profitability,” he added.
Net loss for the year was $12.2 million, or $0.61 per share, compared to $432,575, or $0.18 per share, in 2020. That was primarily due to a non-cash loss on remeasurement of warrant liability of $3.1 million and having a full year’s worth of operating expenses for the first time, including one-time costs associated with technology development, brand awareness and its listing on the CSE, the company said.
“Our key performance indicators and unit economics are heading in the right direction,” CEO Kory Zelickson said. “With approximately $7 million in unaudited proforma revenues we have already established ourselves as a leader within the space and support startup brands scaling online as well as multinational companies that leverage our retail, distribution and B2B resources.”
For example, Vejii saw average order value in the quarter increase to $77.19 from $52.83 last year, which it attributes to improvements in product selection, brand awareness, brand loyalty and customer insight.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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