Purchase order from H&H Group for products that will be sold in the UK.
Medicinal cannabis, CBD and hemp healthcare products company, Bod Australia Limited (ASX: BDA) advises that it has received a binding purchase order from Health & Happiness Group Ltd valued at $1.43m.
The majority of the record order is for Bod's premium CBD products, sold directly to the UK consumers under the CBII brand and includes soft gel cap products and CBD oil products. The balance is for products that will be launched in the coming months through new and established brands. As previously advised, H&H Group undertakes the marketing, sales and distribution processes of collaborative products, defraying Bod's working capital.
A binding purchase order of this size clearly demonstrates Bod's ability to deliver innovative consumer products that are aligned with the brand and consumer demand.Jo Patterson CEO
Bod has now received ~$3.9m binding purchase orders from H&H since October 2019 (Q2 FY2020) for products being sold in Australia and the UK. Of the ~$3.9m in POs, Bod has invoiced $1.26m of these orders in its FY2020 revenue (revenue for 9 months of FY2020 totals $3.4m).
The Company is confident that it will finalise and deliver the majority of the remaining orders, valued at ~$2.64m, before the end of the quarter. This will allow the Company to book the value of any orders delivered during the current quarter as revenue for FY2020. The Company also wishes to advise that all POs received from H&H Group are binding.
Recently received orders will add materially to Bod's growing revenue profile, which has increased 144% on the previous corresponding period to $3.4m.
Further, these binding purchase orders evidence the scale and momentum that Bod is achieving in large markets such as the UK. The POs also outline the value that the Company's exclusive licencing agreement with H&H Group continues to deliver.
Bod's FY2020 revenue growth has been underpinned by the uptake of its CBII products in the UK, the launch of hemp-based products into 2,000 Australian stores under the Swisse Wellness brand and increased demand for Bod's non-CBD herbal based product range. A breakdown of recent product launches is below: Brand: Market: Launch: P
Bod is confident that sales will continue their upward trajectory this quarter and into the next financial year. Multiple new products are under development including a range of immune products containing a CBD extract for the UK and new markets, as well as products using alternative delivery methods.
CEO Jo Patterson said: " Further, it continues the upward trajectory in the Company's order pipeline that in turn will generate sales in both domestic and large international markets.
"As more and more consumers connect with our trusted brands, we expect future purchase orders will naturally increase in size and value. We are experiencing strong uptake of our products across all business divisions and have a number of exciting initiatives pending, which will propel sales and revenue higher in the near term."
To learn more about BOD Australia Limited, visit the company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
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