RooLife and AULife partnership paying off with first sales of Aussie products into China
Food & Agriculture
Food & Agriculture
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RLG has achieved first sales of Australian products into China with new cross border e-commerce partner AULife with more sales orders forecast for Q1 FY23.
RooLife Group (ASX:RLG) has announced that it has achieved first product sales under its new partnership with China-focused e-commerce company AULife International.
Initial sales of ~$190,000 of Australian milk powder products were achieved in the last week of June.
RLG said additional products are being marketed in July and are expected to generate sales and sales orders through Q1 FY24, as the product range to be marketed and sold with AULife is expanded to include other Australian brands and products.
The RLG and AULife partnership is focused on selling and distributing leading Australian brands to the Chinese market with the intention to launch a dedicated e-commerce store for Australian brands on a major Chinese e-commerce platform.
In announcing the partnership RLG said the company and AULife will establish a new operating entity to target additional revenue streams through new product sales, as well as the provision of digital marketing, social media, and e-commerce store operations to a new and targeted client base.
The new entity will be owned 51% by RLG and 49% by AULife, with profit sharing of 80% to RLG and 20% to AULife (net profit basis).
The additional profitability contribution combined with a reduced cost base is expected to significantly contribute towards RLG profitability in FY24.
CEO Bryan Carr said while still in its early days, the partnership with AULife is already proving to be a success.
“These first sales achieved in June through the new channels opened with AULife is confirmation of the value of this new partnership,” Carr said.
“We look forward to continuing to build on these revenue lines through July and the balance of this year as we service the strong demand for quality Australian products in China.”
This article was developed in collaboration with RooLife Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.