Forbidden Foods Limited (ASX:FFF) Reports Q2 FY25 Growth
Quarterly Performance Highlights
Forbidden Foods Limited (ASX: FFF) has reported impressive financial performance for the December 2024 quarter, with group revenues rising to $1.17 million. This marks a 104% increase from the previous quarter and a 77% increase compared to the prior comparative period. Cash receipts from customers also demonstrated significant growth, reaching $1.16 million, up 55% from the previous quarter and 80% on the prior year.
The growth is attributed to the recent acquisition of Oat Milk Goodness (OMG) and strengthened online sales. Online sales for Blue Dinosaur products surged by 94%, reaching $383,000 during the quarter.
Operational Achievements
Forbidden Foods has successfully secured new product stocking agreements with major Australian retailers, expanding its market reach. CEO Alex Aleksic commented, “The December quarter was an exciting period for the business… with the consolidation of key distribution channels in the Australian market and a strong growth profile.”
The Company also reported plans to enhance its market position through additional product-ranging agreements, signalling a strategic shift towards expanding distribution channels while maintaining cost-effective marketing initiatives.
Financial Outlook and Future Initiatives
The Company harnessed operational efficiencies post-acquisition, leading to a reduction in net operating cash outflows to ($269,000), an 80% improvement on the previous year. With the extension of a secured debt facility with Moneytech, Forbidden Foods now has the option to access $1.25 million in working capital.
Looking ahead, Forbidden Foods aims to continue driving growth from its core operations while leveraging its expanded footprint to reach cash flow break-even in the calendar year 2025. Aleksic added, “The Board and management remain committed to managing the growth of a multi-brand strategy… to create long-term cashflow generation.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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