OJC grows winter sales revenue 31%

Today our FMCG small cap Investment The Original Juice Company (ASX:OJC) announced a record Q4 revenue figure - achieving 31% revenue growth from the corresponding quarter last year.

That’s a great top line result from the company and validation that it is now firmly in a growth phase.

It is also worth noting that there is a certain seasonality to orange juice sales in Australia - we see OJC’s ability to book this type of revenue during colder months as impressive.

It also speaks to the product diversification initiatives OJC has undertaken - in particular the popular juice shot range:

For context, OJC sells its juice products, including orange juice and juice shots in major grocery stores like Coles and Woolworths.

The company is on a Fix → Reset → Grow trajectory, and we see this quarter as fitting into the “Reset” bucket.

The company appears to have stabilised its cash flows and is growing its revenues, despite some challenges including inflation, labour shortages and increased interest rates.

We think this quarter is further evidence that the company is on the right track and primed for the growth stage of development.

On that note, sales revenue was up to $14.5M, primarily driven by sales from new products, in particular the juice shots which capture 84% of the market share in grocery stores.

This quarter OJC announced that it had partnered with Aldi China to export its orange and apple juice in its stores, with the first shipments expected at the start of 2024.

The company was operating cash flow positive with $103,000 in cash inflows for the business and it has $1.6M in the bank.

What’s next for OJC?

Next for OJC we want to see the company sign some landmark distribution agreements so that it can get its product in the hands of more people in more places.