VANCOUVER, British Columbia--(BUSINESS WIRE)--
Growing popularity with Chinese consumers drives strong revenue growth in first six months of 2019
Astron Connect Inc. (the “Company” or “Astron”, formerly “Exalt Capital Corp.”) (AST.V), a leader in bringing Canadian food and beverage products to China and other emerging markets, today announced its second quarter results for the six month period ended March 31, 2019. All dollar amounts are in Canadian dollars, unless otherwise indicated.
“The Company continued its steady growth in the second quarter as the popularity of our products increased among Chinese consumers,” said Randall Smallbone, President and CEO of Astron Connect. “The success to date of Dutchman’s Gold Honey and Sachiel Water has shown our ability to launch successful products in China and build demand from buyers. We see further growth prospects in the country, and we are excited to introduce new authentic Canadian food and beverage brands to Chinese market.”
Highlights from the First Half of 2019
- Grew revenue to $901,912 in the first six months of the year from $5,038 the year before
- Increased gross profit to $175,914 in the first six months of the year from $1,014 the year before
- 19.5% gross margin on sales
- Net loss rose to $907,794 in the first six months of the year largely due to increased expenses associated with funding growth
- Ended the quarter with a cash balance of $1,716,408 to fund future expansion
- Signed a Memorandum of Understanding valued at as much as $3 million USD with Junding Industrial Co., an influential beverage supplier in the Northern Zhejiang region of China, to expand distribution of Sachiel Water products
- Added Fei Chu, a highly experienced food and beverage procurement executive based in Beijing, to the Board of Directors
Selected Financial Information for the Six Months Ended March 31, 2019
|Basic and diluted EPS||(0.02)||(0.15)|
For further financial information, please refer to the annual audited financial statements.
“We have seen strong and growing demand for our products in China, despite international trade tensions that have persisted in recent months,” continued Mr. Smallbone. “We are continuing to explore further partnerships with authentic Canadian food and beverage brands that we believe will resonate with Chinese consumers, including ongoing product taste tests with potential partners, and don’t anticipate geopolitical issues will have a material impact on our business.”
Financial Statements and MD&A
The Company's Financial Statements and Management's Discussion and Analysis (MD&A) for the three and six months ended March 31, 2019 will be accessible on SEDAR at www.sedar.com under Astron's profile and on the Company's website at www.astronconnect.com.
The TSXV has neither approved nor disapproved the contents of this news release. Neither the TSXV nor its Regulation Service Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
ABOUT ASTRON CONNECT
Astron Connect (AST.V) helps Canadian enterprises in the food and beverage industry break through the noise and bring their products to new international markets in the emerging world. Astron Connect brings Canadian food and beverage companies to the world through its extensive connections and export logistics capabilities in China and emerging markets. Sachiel Water (an Astron brand) supplies China and other emerging markets with pure Canadian bottled spring water. For more information, visit www.astronconnect.com.