Vejii Holdings Ltd said its revenue grew nearly five-fold in the first quarter of 2022 following two strategic acquisitions to expand its presence in the plant-based food industry.
During the three-month period to end March 31, 2022, the Canadian company reported total revenue of C$1.58 million, a 541% increase from the $241,000 it reported in the same year-ago period.
In a statement, Vejii told shareholders that the quarter was “significant” as it represents the first reported quarter of financials having completed both acquisitions of Veg Essentials LLC and VEDGEco USA Inc.
READ: Vejii Holdings to enter booming UK plant-based foods market with acquisition of Frozenly
Vejii said it is still working through its full integration plan and expects full synergies to be realized by the third quarter of 2022.
Other highlights from the balance sheet include a sharp increase in gross margins, from 11% in 1Q 2021 to 38% in 1Q 2022, and a marked decrease in customer acquisition cost, which fell to $20.66 compared to $95.44 in the comparable year-ago quarter.
"We are very pleased with our performance in the first quarter of 2022, with revenues and gross margins increasing, and costs proportionately decreasing, we anticipate being able to build a sustainable business,” CEO Korey Zelickson said in a statement accompanying the numbers.
Zelickson revealed he has personally advanced the company more than $1.4 million in the year to date, to maintain operations, while it works on a longer-term financing solution. Vejii and Zelickson intend to convert some of the advances and a loan in the amount of $500,000 made pursuant to a loan agreement between the two parties dated September 8, 2021, into a secured debenture at an interest rate of 10% and a maturity term of two years.
“Management and myself personally have been committed to doing right by our investors and shareholders,” Zelickson said.
The company reported a net loss of C$2.49 million or $0.09 per share compared to $1.97 million or $0.14 per share in the same year-ago quarter.
Headquartered in Kelowna, BC, Vejii is a unified digital marketplace and fulfillment platform featuring thousands of plant-based and sustainable-living products from a growing list of hundreds of vendors.
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