Eve Investments reports record quarter boosted by Amazon online sales

Special Report: Eve Investments reports record sales in USA, Australia in its December 2020 Quarterly Update.

Eve Investments’ (ASX:EVE) December 2020 Quarterly Update reports strong sales in the US and Australia, strong customer demand for Meluka Australia’s raw honey in China, and group unaudited revenues of $1.9 million.

Meluka Australia products were also accepted by major US grocery chain Whole Foods Market, while a positive early launch of Meluka Australia on Amazon Canada saw encouraging early sales of organic raw honey recorded.

Meanwhile, Omni Innovation (38 per cent owned by Eve) entered a licensing agreement with unlisted company Myopharm for distribution of Gluco Smooth.

Strong period in group company revenues

The December quarter saw strong group company revenues of $1.9 million, despite no orders from China during the quarter due to shipments to China arriving late in the quarter ahead of Chinese New Year celebrations.

Sales revenues from the US and Australia boasted new quarterly records for the company and the commencement of sales into Canada via Amazon Canada showed some encouraging initial sales results.

“The December quarter was very pleasing with strong revenues achieved through good sales growth in the US and Australia,” said Eve Investments’ managing director Bill Fry.

“Our Meluka Australia branded honey products continue to perform well with our Organic Native Raw Honey now consistently ranked in the top twenty honey products selling on US Amazon.”

Meluka Australia launched its honey range on Amazon in Canada in late October and has since experienced a slew of positive reviews and high ranking of its products, while US sales continued to represent the largest percentage of sales.

Hometown growth

While the US, Canada and China point towards strong sales, December was the most successful quarter for Meluka in Australia to date.

The listing on Amazon Australia has contributed to increasing sales with Native Raw Honey consistently ranked the number one honey on Amazon Australia, and in the top three within the entire grocery category.

A highly competitive final quarter to 2020 saw strong consumer interest driven by Black Friday, Christmas and Boxing Day sales and December saw Meluka’s social media presence grow significantly.

China exceeds expectations

Meluka Australia’s raw honey product was pre-sold into the Yandi Biotech distribution network of wholesalers across Mainland China which provides a great platform for Eve.

Yandi’s wholesalers completely sold out of their Meluka Australia honey stock during the China Singles’ Day event on November 11, the largest retail and online shopping day in the world.

This event was closely followed by Meluka Australia’s Tea Tree Honey and Tea Tree Oil launch with Yandi Biotech on 19-20 December.

Europe next

Eve Investments has appointed a specialist European based Amazon consulting company to manage Meluka Australia’s advertising, listing optimisation and customer communications for the whole of Europe. While the initial focus will be on the UK and Germany, the Company has its sights on other markets towards the end of 2021.

Fry is looking forward to expanding operations in current markets and establishing new regions in the forthcoming quarters.

“The additional of several new regions in the next two quarters and the commencement of sales through Whole Foods Market in the US will provide exciting avenues for continued sales growth.”

Last week Stockhead covered Eve’s Omni Innovation’s multi-country distribution deal and Meluka Australia’s Whole Foods Market launch.

Eve Investment’s share price has seen an approximate 40% increase since the start of 2021.

This article was developed in collaboration with Eve Investments, 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.