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ALUULA Composites Reports First Quarter 2024 Financial Results
Tuesday, April 2, 2024Company Profile | Follow Company
Victoria, BC, April 2, 2024--(T-Net)--ALUULA Composites Inc. (TSXV: AUUA) today reported its financial results for the three-month period ended January 31, 2024 ("Q1 2024"). All currency amounts are listed in Canadian dollars.
Sage Berryman, CEO and President, ALUULA Composites
"In Q1 2024, we achieved sales of $2.3 million, reflecting a 61% increase compared to the same period last year. This impressive growth is directly linked to an increase in new customers in our vertical markets," said Sage Berryman, CEO and President of ALUULA.
"The wind sport sector has demonstrated strong sales growth for ALUULA. We've experienced our brand partner list quickly expand, gaining strong adoption of ALUULA materials with these leading partners. In the performance outdoor sector, we've also seen strong activity which we expect will start translating to meaningful revenue. We are pleased to see our customers support ALUULA's value proposition, reflected in the growing order volumes for our materials. This positive trend has successfully brought our gross margins into the target range for this quarter."
During Q1 2024, ALUULA onboarded five new wind sports brands, commercialized products with nine, and also engaged with over thirty brands in the outdoor industry. The Company unveiled brand partnerships with Arc'teryx, Durston Gear, and Rockgeist.
"ALUULA materials are known for delivering what they set out to. We are thrilled to see our sales pipeline remain robust and expanding, fueled by the growing demand for sustainable and high-performing textiles," said Berryman.
This quarter, ALUULA sold 54,924 square meters to seven commercialized customers at an average price of $31 per square meter, compared to 15,007 square meters sold to one customer in Q1 2023 at a similar average price per square meter, representing a 266% increase in sales volume. ALUULA considers companies purchasing more than 1,000 square meters of material as commercialized.
"With Q2 2024 well underway, we are determined to maintain this momentum as we continue to expand our core business," said Berryman. "We aim to turn the interest we're seeing from brands wanting to partner with ALUULA into successful, long-term relationships."
Key Q1 2024 Highlights
Key Q1 2024 Corporate Update
During Q1 2024, ALUULA capitalized on momentum built during the fiscal 2023 year. The Company commercialized several products with new customers in the wind sport and outdoor vertical markets and reported its highest quarterly sales and material production since its inception. The Company is now uniquely positioned to focus on growth, expand its product offering, and capitalize on sales opportunities in the outdoor market and other vertical markets.
In fiscal 2023 ALUULA began working with customers across several vertical markets including Outdoor, Sailing, and Airships. Working in partnership with these customers in order to successfully replace incumbent materials in these new markets, ALUULA has developed additional products including ALUULA Durlyte ("Durlyte"), and ALUULA Graflyteâ„¢ ("Graflyte").
After finalizing material specifications for Durlyte and Graflyte during Q4 2023, ALUULA showcased these materials and new brand partnerships at the ISPO, with highlights as follows:
Following ISPO, ALUULA's sales pipeline featuring outdoor vertical market opportunities grew by over thirty new leads.
In the wind sports market, ALUULA continued to gain momentum in Q1 2024, which represents the nearest term sales opportunity. Over the past two fiscal years, ALUULA commercialized with a limited number of brand partners to showcase its materials' competitive advantages. With ALUULA's Gold material's superior performance now successfully demonstrated, ALUULA is securing commitments from additional wind sport brands. At the end of Q1 2024, nine wind sport brands had launched products with the Gold material and an additional five are expected to follow during the second quarter of fiscal 2024.
ALUULA's sales process and brand partnership development involves multiple steps, from initial contact through to final product launch. This process can be time consuming, though it ensures each product commercialization is successful. Although this long sales cycle results in delayed revenue, the company says it is essential in order for ALUULA to maintain successful long-term customer and brand relationships, where ALUULA materials become the core ingredient of high-value products.
Financial Statements and Management's Discussion and Analysis
This earnings press release should be read in conjunction with ALUULA's interim financial statements for the three months ended January 31, 2024 (the "Financial Statements") and the related management's discussion & analysis (the "MD&A "), which can be found on ALUULA's website and its issuer profile on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at www.sedarplus.ca.
aluula.com | TSXV: AUUA
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