29% increase in total gross revenue on YOY (Year on year) basis.

Candy Club achieved record sales with the expansion of their B2B (Business to Business) distribution

• FY2021 B2B revenue increased 123% to $14.7 million, from $6.6 million YoY

• FY2021 overall revenue estimated at ~$17m, an increase of 86% YoY

• 4Q 2021 B2B revenue increased 91% YoY to $5.36m, from $2.8m 4Q 2020

• 4Q Non operating cash flow (NOCF) improved 59% QoQ to -$1.78m with further improvement expected in Q1 2022

• January 2022 B2B revenue projected to be up 53% to $1.5m over January 2021

Quarterly Activities Report & Appendix 4C for the quarter ended 31 December 2021

Candy Club Holdings Limited (ASX: CLB) announced its results for the three months ending 31 December 2021 ("4Q FY2021"). All dollar figures are in US dollar terms unless otherwise specified.

The Company achieved total gross revenue of $5.84 million in 4Q FY2021, representing an increase of 78% year-on-year (“YoY”). This was driven by its business-to-business (“B2B”) segment achieving $5.36 million in gross revenue during 4Q FY2021 (91% YoY). On a quarter-on-quarter (“QoQ”) basis, the B2B segment grew by 48%.

Operational Highlights:

The Candy Club B2B business has two robust segments;

i. ‘Direct sales’ channel - which services large regional and national retail accounts directly through its internal sales force and brokers

ii. e-Commerce business - where the Company sells its products primarily to small, independent retailers on third-party B2B platforms.

Each of these segments continues to grow in both customer numbers and in total sales and enables the Company to access a large and diverse customer base.

Key highlights for 4Q 2021 include:

• Addition of >2000 active new customers and >4000 active doors

• The number of large regional and national retail accounts carrying Candy Club products on a permanent ranging basis has increased to 35 from 12

• Strong sell-thru at all major customers, including top customers Kohl’s and Target

• 100% reorder rate by the Company’s top 25 customers

• In late Q4, Candy Club began selling its products internationally through the Faire.com platform in the UK, EU and Canada, with this segment of the business already driving ~$500,000 on an annualized basis

• Candy Club achieving the #1 selling item on the entire Faire.com platform in 2021, a significant accomplishment given the number of products and volume that this $12 billion market-cap company drives

• Significant enhancements to its inventory management processes that drove a material improvement in its NOCF of 59% QoQ with additional improvements expected in Q1 2022

• Cost cutting measures and increased economies of scale in its supply chain

• A price increase that was successfully implemented on 1st January 2022, strengthening projected January revenue and margins

I particularly like that directors have been buying on market over the last 18 months

Disclosure: Small Holding IRL

Another point of note from the recent quarterly report is the intention to appoint an investment bank to explore strategic options going forward, does this imply that CLB could be acquired in the near future?

Awfully quiet from management, market depth completely dried up, have to wonder what these guys are up to, their investor relations, or lack there of, is a concern.