Taat Global Alternatives reported gross revenue of CAD515,464 ($399,049) for the second quarter of fiscal 2022, up 9.7 percent over that reported in the comparable 2021 quarter. More than 54 percent of its gross quarter revenues came from repeat orders during the quarter.
The company’s cost of goods sold dropped, reflecting an improvement in gross margin from 28.09 percent in the first quarter of 2022 to 46.1 percent in second quarter of 2022
The company’s flagship product, a nicotine-free and tobacco-free cigarette called Taat, is currently sold in over 2,700 U.S. stores, which include locations of major national and global chains in the convenience and gas categories.
As a greater quantity of Taat in retail circulation is now manufactured with the Version III formulation of its patent-pending Beyond Tobacco base material, the company and its wholesale/retail partners have reported improvements to the conversion rates of adult smokers who choose Taat instead of their preferred brand of tobacco cigarettes.
Earlier this year, Taat entered into an agreement to acquire ADCO Distributors, an Ohio tobacco distributor. The Taat brand name became a registered trademark in eight global markets including the the United States and the European Union.
“Our fiscal Q2 2022 was a pivotal timeframe for the company as we made two key transitions,” said Taat Founder Joe Deighan in a statement. “The first was the acquisition of ADCO, which added integrated distribution to our business model in addition to a steady revenue stream of over CAD$87 million (based on 2021 financial results) to complement our existing sales pipeline of Taat throughout the United States.
“The second was rotating Taat inventory with our wholesale and retail partners to ensure Taat made with the V3 formulation of Beyond Tobacco is as available as possible across our nationwide footprint. It’s tricky to articulate just how significant V3 is compared to our previous formulations.
“Consumer feedback from adult smokers who have tried V3 reflects validation of our mission to create an experience that is truly better than their preferred tobacco cigarette brand. This has done wonders for our conversion rates at the point of sale, which is why we elected to take the plunge to voluntarily replace existing inventory with product made using V3.
“With the added distribution bandwidth resulting from our acquisition of ADCO, we are excited to be carrying on as an integrated player in the $812 billion global tobacco category, and are thankful to our loyal base of investors for their continued support.”