Vejii Holdings Ltd. (VEJI.C) Flexes Its Bag, Announces Record Revenues

Vejii Keeps Its Momentum

$11.43 Market Capitalization

Vejii Holdings Ltd. (VEJI.C) announced today that it had a record unaudited consolidated revenue of approximately $513,000 in January 2022, which represents an achievement of 1,158% growth compared to the same period in 2021. Not too shabby. Needless to say, 2021 was a transformative year for Vejii, and here is why.

“We believe the continued revenue growth shows the synergies of our M&A strategy and the growth of our organic business. Vejii’s platform offers brands the ability to go direct-to-consumer at a time when speed to market is key for brands, using Vejii Fulfillment Services. We allow brands to list on our marketplace, with Vejii providing pick, pack, and shipping directly to consumers…

This service lets brands get their products to market quickly and allows Vejii to continue expanding its product offering while maintaining its capital-light model. Expanded product selection and direct delivery on B2B and B2C are leading our growth” commented Darren Gill, President & COO of Vejii.

Vejii commenced its commercial sales on November 19, 2020, after announcing the launch of its online marketplace for vegan and plant-based products, ShopVejii.com. While the Company does not market or manufacture any of its own products, Vejii partners with brands to offer customers the largest selection of everyday products.

In fact, Vejii’s platform was developed to scale and accommodate thousands of vendors and millions of products. In order to facilitate the growth of businesses on the Vejii platform, the Company provides brands with an affordable, easy-to-use sales channel. Vejii is also committed to supporting local, small business owners and the Company’s fee structure reflects this.

Current Fee Structure:

< $1 million of annual sales = 10% of revenue
< $2.5 million of annual sales = 12.5% of revenue
> $2.5 million of annual sales = 15% of revenue

Through Vejii’s platform, brands and vendors have access to the Company’s Vendor Portal whereby clients can access sales, make product bundles, upload new products, monitor or track sales data, and manage integrations.

With this in mind, in just one year, Vejii has built out its marketplace to offer more than 3,500 products from over 500 brands in the Consumer Packages Goods (CPG) space. As a whole, a recent report from Absolute Reports Private Ltd. estimates that the Global CPG Market will reach roughly USD$2.38 trillion by 2027, an increase from USD$1.938 trillion in 2020.

This indicates that the market is expanding at a Compound Annual Growth Rate (CAGR) of 3%, which is pretty impressive given the market’s colossal size. According to the Consumer Brands Association, in 2021, sales of CPG products surged 9.4% to $1.53 trillion. It goes without saying that the COVID-19 pandemic has accelerated sales as consumers continue to stock up on essentials like toilet paper, food, and…alcohol?

Acquisitions

Fun fact, in the United States, national alcohol sales increased 54% for the week ended March 21, 2020, with online sales increasing 262% from 2019. Anyways, Vejii has also made some impressive acquisitions in the last year, including Vegan Essentials LLC, and the Company’s new business-to-business (B2B) division, VEDGEco USA Inc.

Founded in 1997, Vegan Essentials has been awarded the best online vegan store by VegNews from 2005-2018, as well as the best online vegan grocer from 2018-2021. That being said, Vejii’s acquisition of Vegan Essentials will provide the Company with access to a second strategically located warehouse in the US, as well as over 20 years of consumer insight, data, and buying power.

It is worth noting that Vegan Essentials brought with it CAD$3.5 million of revenue following the acquisition. In addition to Vegan Essentials, Vejii acquired VEDGEco USA Inc., a leading online B2B wholesale platform for plant-based products.

The acquisition of VEDGEco is intended to drive synergies across purchasing, customer service, technology, and logistics for Vejii and VEDGEco. Furthermore, Vejii is now able to leverage VEDGEco’s existing facilities in Hawaii, Northern California, and Georgia.

“We have been able to achieve tremendous growth in 14 short months since launching. We have continued to expand our footprint, customer base, and brand partnerships…

We have gained a lot of traction within the industry, having onboarded hundreds of brands from innovative start-ups to multinational organizations…

I am confident that with a continued focus on execution and increased brand awareness, our metrics will continue to improve,” said Kory Zelickson, CEO of Vejii.

In total, the combined Company has six points of distribution in North America and plans to add more in key strategic locations. As previously mentioned, in January 2022, Vejii saw total unaudited consolidated revenues of approximately $513,000, with a gross profit of roughly $189,000.

This represents a 37% gross margin and approximately 1,158% growth over 2021 revenues for the sale period. As such, January 2022 marks the highest revenue achieved by Vejii in any single month of reporting since its inception. Let’s see if Vejii can keep this momentum moving forward.