Cannabis play BOD reports 70pc revenue lift as Daigou shoppers start to buy
Health & Biotech
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Cannabis face cream maker BOD Australia says revenue lifted 70 per cent in the December half, as Asian sales took off.
The company (ASX:BDA) saw actual sales revenue rise from $245,000 to $416,000, kicked along by the launch of a Daigou sales strategy in December — targeting shoppers (or “daigou”) who buy Australian healthcare, cosmetics or local food products on behalf of people in China.
“We are witnessing a strong pipeline of orders through these [Daigou] channels and look to further expand our international distribution further across the second half,” chief Jo Paterson said.
The number of stockists of its products, which includes hemp-infused honey and cannabis-based topical face creams, rose from 325 to 944.
BOD started importing cannabis oil into Australia in mid-March.
The half-year loss narrowed slightly to $1.3 million, from $1.6 million.
In November, BOD secured the distribution rights to a range called Mamacare, did a deal with In2Pharma to sell anti-stress and irritable bowel syndrome natural medicines into pharmacies, and got an import licence for cannabis.
It is using a cannabis powder from Swiss partner Linnea in a Phase I clinical trial of an edible wafer.
BOD shares closed down 2 per cent at 47c.