The BOD Australia Ltd (ASX: BDA) share price is climbing higher on news the company has secured purchase orders for the Italian market. In midday trade, the Bod share price is up 5.7% at 46 cents.
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What did Bod announce?
This morning, Bod advised it has received additional orders from its exclusive global partner, Health & Happiness Group, for 4 Swisse Wellness-branded hemp seed oil products to be sold in Italy.
This follows an initial order from Health & Happiness, in which $1 million worth of products entered the Italian market last month. The new purchase of the hemp seed oil products is worth $871,413. As per the licencing agreement terms, Bod will also collect royalty payments on net product sales, and a cost-plus margin for the supply of its ingredients.
Enclosed in a soft gel cap form, the hemp seed oil products are designed to promote sleep, reduce stress and increase general wellness. Once delivered, the batch will be distributed to more than 4,000 pharmacies as well as being available through Swisse e-commerce channels.
Bod revealed that the market entrance into Italy will coincide with the launch of a Swisse branded marketing campaign. In-store promotions and social media advertising will form part of a sales initiative to drive purchases and increase brand awareness.
In addition, the company will seek to further strengthen its revenue growth by introducing nine new products into the United Kingdom and Europe. Marketed under the brand name of Swisse and CBII, the CBD and hemp products will include topical creams, soft gel caps and other skincare items.
As Bod's manufacturing facilities have started production, it is expected that these will be launched in the coming months.
What did management say?
Bod CEO Jo Patterson welcomed the progress, saying:
It is pleasing to see the momentum that is building for the Italian market in a short time period which strengthens the company's growing revenue profile and highlights the potential growth trajectory that our exclusive global agreement with H&H Group can deliver.
Bod is now selling products in Australia, the UK, France, Italy and the Netherlands. H&H Group have an established footprint in each of these key markets and with a number of new products to be brought to market shortly, we expect additional purchase orders to continue to grow in size and volume.
More on the Bod share price
The Bod share price performed relatively well before the start of this month, increasing more than 400% from its March lows.
However, in the past week alone, its shares have dropped more than 20%. This comes after reaching a 52-week high of 74 cents 2 weeks ago.
