Trading update:
East Imperial (EISB ) announced today audited FY21 results for the year ended 31 December 2021.
Sales were up 62% to £2.8m, driven by lifting of Covid restrictions in H2, and pandemic-related growth in off-trade (off-premise) and Direct to Consumer ("DNC") business.
Additionally, Gross Profit grew 11%, pushing Operating Profit up 121%, demonstrating the operational gearing in the Company.
Net Cash grew 12% to £0.3m as of 31 December 2021, which has subsequently been increased to £2.2m as of 13 March (post-balance sheet), following a £3.4m placement of new shares in January 2022.
The new capital injection has ensured continued expansion for the premium beverage company as demand increases in the segment.
Examples of recent wins include new distribution agreements with SUTL Group in Singapore and wider Indochina, Leung Yick in Hong Kong, and RNDC in the US.
Additionally, new supply agreements were signed with 245 Dan Murphy's stores in Australia (a major beverage retailer in the country) and New Zealand's largest supermarket chain, driving more off-trade business.
Furthermore, East Imperial introduced a popular new can format last year, as well as Coffee and Tonic, the Company's entry into the quickly growing cold brew coffee market.
A new Head of Sales has now been hired in the US to facilitate expansion into that significant addressable market.
View from Vox
While East Imperial faced supply chain issues and Covid-related challenges in its on-trade (on-premise) business early in 2021, it saw significant growth in aforementioned off-trade and eCommerce sales.
As Covid restrictions continue to ease, on-trade business has been steadily picking up as well. Nevertheless, the market was unimpressed this morning with EISB down 19% in mid-day trading.
Looking ahead, prospects for the Company remain strong with off-trade business steadily growing. Additionally, aggressive expansion is underway, particularly in the US, after the company raised a further £3.4m via the placement in January. As global demand for premium beverages and mixers continues to increase, the Company looks well-positioned for future growth.
Follow News & Updates from East Imperial: