Fitell Corporation Announces FY23 Revenue Of $4.8M

Fitell Corp. +2.30% Pre

Fitell Corp.

FTEL

4.90

4.90

+2.30%

0.00% Pre

FY 2023 Financial Highlights

  • Revenue was $4.8 million, a year-to-year decrease of $3,356,512 or 41.2%, primarily due to reduced consumer spending from inflation and raising of interest rates in Australia.
  • Gross profit was $2.2 million, a year-to-year decrease of $1,462,255 or 40.2%.
  • Gross margin was 45.3%, a year-to-year increase of 0.7%.
  • Sales of consumable products was $223,343, a year-to-year increase of 11.6% or $23,239, due to efforts to diversify revenue streams.

Revenue by Categories vs. Prior Year

Revenue Change from FY 2022  
US$ % US$ %  
Merchandise revenue 4,036,047 84.1% (3,210,541) -44.3%
Sales of consumable products 223,343 4.7% 23,239 11.6%
Revenue from licensing customers 539,832 11.2% (169,210) -23.9%



 

  • Merchandise revenue decreased significantly by 44.3% or $3,210,541 to $4,036,04. The decrease was primarily attributable to: (i) a 42.6% decrease in sales order, primarily due to inflation and raising of interest rates in Australia; (ii) a decrease of 3.0% in the average revenue per order. Despite the consumer confidences in Australia is week recently, but the management has devoted a lot of marketing efforts in promoting our products and have successfully retained many loyal customers.
  • Sales of consumable products represents the revenue generated by selling various lifestyle products. The sales of consumable products have increased 11.6% or $23,239 to $223,343 from $200,104 in FY 2022. The increase was due to our additional efforts to diversify our revenue streams, to mitigate the negative financial impact attributed to the decline in merchandise revenue.

     
  • Revenue from licensing customers represents licensing, management consultant income, and some agency fee for distributing other miscellaneous items. Revenue from licensing customers has decreased by 23.9% or $169,216 to $539,832 in FY 2023 from $709,042 in FY 2022. The decrease was due to the temporarily suspension of the overseas expansions recently, because the market sentiments are negatively affected by the inflations and the rising in interest rate in the global market. Nevertheless, we will expand these services again, especially to the Asia market, when the time is right.

     

Cost of goods sold decreased by approximately $1.9 million, or 41.9%, from $4,520,078 in FY 2022 to $2,625,821.

Gross profit was $2,173,401 for the fiscal year ended June 30, 2023 and $3,635,656 for the fiscal year ended June 30, 2022, a decrease of $1,462,255, or 40.2%. The decrease was a combined result of the decrease in merchandise revenues and service revenue.

The gross profit margin increased 0.7% from 44.6% in FY 2022, to 45.3. The slight increase is mainly due to the change in revenue mix, as we have generated relatively more services revenue.

The IPO related expenses were $662,418 for consulting fee which is related to the Initial Public Offering project.

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