Tomato face cream maker Abundant pursues social media stardom
Health & Biotech
Health & Biotech
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Vegetable-based skin care maker Abundant may have tripled its cash-burn in the December half — but it also logged a 1000 per cent increase in its Facebook friends.
…From 22 to 232 followers.
“In the period October to December 2017, website traffic doubled to 3,300. Our Facebook following increased by more than 1,000% from 22 to 232, while our Instagram following also jumped sharply from 91 to 1,149,” Abundant (ASX:ABT) told investors in it’s December half update.
All those social media posts just might be working. The company recorded the first revenue for its skincare business of $130,580 for the half – predominantly from its Chinese distribution network. Total half-year revenue was $391,000 up from $64,000.
In addition to its tomato face cream and lip balm the company has launched tomato eye cream and magnesium sports products.
Losses doubled to $1.1 million compared to a $556,000 in the same period last year.
Operating cash-burn grew from $351,000 to $1.05 million.
Abundant’s budget got a boost earlier this week after an increased $650,000 R&D rebate hit the bank accounts, up from an earlier estimate of $250,000. A further $50,000 is expected from an export development grant.
“It is reassuring that the State and Federal Governments are recognising ABT’s innovative work through the TechVoucher and Boosting Business Innovation Program as well as Innovation Connections, which have helped us accelerate our research and scale up both locally and internationally.”
Shares in the company (ASX:ABT) were trading down 2 per cent on Thursday morning at 42c. They have traded between 32c and 63c over the past year.