Exxe Group Reports Record Revenue and Net Profit for the September 30, 2022 Quarter
-Exxe generates significant growth year over year and sequentially
– 2Q22 revenue jumped 62.9% to a new record of $ 13.28 million compared to 2Q21 results
-Net income climbed to a record $ 2.9 million, up 131.6% from fiscal quarter 2021
-Exxe will provide financial forecast, milestones, in a new PowerPoint on November 29
NEW YORK, NY / ACCESSWIRE / November 16, 2021 / Exxe Group, Inc. (OTC ROSE: AXXA), (“Exxe” or the “Company”), a diversified fintech company, is pleased to announce that the Company has released its quarterly and semi-annual results for the period ended September 30, 2021.
Exxe Group generated record quarterly results in terms of sales and net income for the period. 1Q22 revenue was $ 13,279,551, compared to $ 8,154,139 for the same period a year ago, and $ 11,022,713 for 1Q22 which ended just ninety days earlier. As shown in the table above, revenue increased 62.9% year-on-year and 20.5% sequentially. Net income was $ 2,894,289 compared to $ 1,249,894 last year and $ 1,831,875 in 1Q22. The substantial year-over-year and sequential changes in net income were 131.5% and 58%, respectively.
For the six-month period, revenues increased 68% to $ 24,302,264, from $ 14,460,418, while net income jumped 83% to $ 4,726,164, from $ 2,582,241.
The Company experienced a strong increase in its gross profit and gross profit margin. Gross margin increased by over 146% to $ 5.9 million from $ 2.4 million in 2Q21, resulting in a gross profit margin of 45.1% from 29.8%. While operating expenses also increased dramatically to reflect the increase in revenue, the operating margin of over 25% compared to the 19% margin for the period last year. It should be noted that operating margins of 25% or more are typically associated with companies that are heavily engaged in fintech, online, and healthcare business, which is clearly a management goal. Thus, Exxe believes that this improvement in gross margin and operational performance could continue, given the migration and evolution of key assets of Exxe towards an online digital orientation. In general, this performance also demonstrates that the Company’s private equity business model is effective while exceeding internal expectations.
Exxe also benefited from significant increases in assets and equity for the fiscal quarter of September 2022. Current assets of $ 22,655,640 jumped 40.5% from $ 16,128,818, l total assets of $ 242,014,088 increased 17.5% from $ 206,022,467 and shareholders’ equity increased 24.4% to $ 156,514,713 from $ 125,847,453 at 2Q21.
For the period ended September 2021, medical company Mmeditec reported revenue of approximately $ 1.4 million, a 40% jump from the $ 999,000 generated in the June 2021 quarter. Daskonzept, a high-end interior design and furniture company, reported sales of $ 1 million in the last quarter, an increase of 29%. One of Exxe Group’s main automotive lines posted revenue of $ 2.1 million versus $ 1.34 million, a 57% jump from April-June 2021. The conversion and the ongoing shift to digital and e-commerce sales and service platforms have been revenue drivers across all of these segments, which accounted for a large portion of the growth and roughly one-third of revenue. global business.
Interestingly, the current supply chain challenges have been a boon for Exxe’s key businesses, such as the medical and food industries, a trend that we believe will continue in the quarter. ongoing and beyond. In the medical segment, the combination of supply shortages and increasing consumption and demand has caused existing customers, especially hospitals, nursing services, outpatient care, etc. , expand their stocks. Mmeditech management anticipated this situation and secured an additional inventory of products. As a result, the September quarter was the strongest quarter in company history and the current quarter is expected to see further increases in sales and profits.
The growth of the Daskonzept group can be attributed to the confluence of several market trends positively impacting the business of the company today and paving the way for major growth in the future. These include new design and product markets for home office solutions as well as “multiple kitchen solutions”. Additionally, new digital usage concepts such as co-working, joint venture agreements and profit sharing models with real estate companies have led to scalable, profitable and high growth verticals. In fact, 50% of the increase in revenue over the last quarter was attributed to these new business models. The current quarter, however, is likely to be dominated by seasonal retail furniture design and product sales in key European markets. Finally, Daskonzept Group has succeeded in winning major calls for tenders from the Swiss government and other public authorities as well as interior design contracts for large construction projects and real estate projects. These gains provide the company and Exxe with revenue visibility for the quarters to come.
We continue to provide significant resources to 1Myle, our UK-based cryptocurrency exchange, which started contributing revenue at the end of the September quarter. We remain very excited about the outlook for this segment and look to substantial financial performance ahead. To ensure scalability, security, and functionality, three issues that have plagued some of the biggest exchanges recently, we take a phased approach to risk, business execution, and growth. As a result, our customer portal will provide enviable customer security and our model will reduce business risk while entering its first phase of major growth, starting this quarter. The growth in listings and revenues is expected to be facilitated in part by our strong six million third party market relationships. In addition, our goal is to make 1Myle’s services available to US investors as early as next year. We assess all compliance requirements. Additionally, we intend to ensure that any bugs or issues are resolved before the platform is introduced in the United States, given current and expected pent-up demand.
In addition, our Agribusiness, the largest income-generating category of the Exxe group, is performing well despite global inflation. Like Mmeditech, the company’s agribusiness groups have benefited from customer product storage, a situation we expect to continue. Additionally, this segment does not appear to be affected by these supply chain constraints, in part due to the internal policies and procedures in place at the respective companies.
In recent months we have been referring to the “New Deal” which is a large and complex transaction that is being closed in phases. We expect it to close completely in the coming weeks and will provide more details at that time.
Given the two consecutive quarters of record revenue and bottom line, management plans to release the updated corporate roadmap for the company, including impact, management vision, overall milestones and by activity category, and screenings via a Powerpoint presentation and press release on November 29, 2021. These documents will be available on our website (www.ExxegGroup.com) and through Accesswire’s downstream newswire partners.
Exxe Group CEO Dr Eduard Nazmiev commented on the strong financial performance and upcoming publications. “We are very pleased to have consecutive record quarterly financial results. This is particularly impressive as we have generated year-over-year and sequential outperformance. These results exceeded our internal expectations and confirm our business model and our approach The Exxe Our vision is largely centered on the migration and evolution of our activities, including bricks and mortar, towards online and digital infrastructures. This approach can lead us towards spin-offs or of pubco’s potential private sales, as we aim for substantial gains in market value for our shareholders. These goals are achievable if we continue to execute our model and achieve specific milestones on this path. We look forward to sharing the details regarding these topics with our loyal investors next week.
About the Exxe group
Exxe Group is a diversified fintech company that focuses on acquisitions in the following sectors: real estate, finance, agribusiness, sustainability, digital media and software related technology platforms. Exxe Group is an acquisition-driven company. The Company’s strategy is to acquire a controlling stake in undervalued companies and play an active role in improving their performance – accelerating their growth by providing both access to capital and management expertise.
For more information, please visit the company website
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