Sales Revenues and Direct Selling Stores Combined to Heighten La Kaffa’s Revenue in the Low Season of January.

La Kaffa International Co., Ltd. (hereinafter referred to as “La Kaffa,” stock code of Taipei Exchange: 2732) today announced that its consolidated sales revenue of January 2016 was 150 million, significantly increasing 17.13%, compared to the same period last year. La Kaffa stated that the performance in the low season of January was impressive, since the sales revenues and direct selling stores’ sales, that drive La Kaffa’s growth, had increased much more than the same period last year. The number of Wagokoro Tonkatsu Anzu Ginza’s stores had specifically doubled from the same period last year to 13, and now direct selling stores had accounted for more than 45% of the overall revenue of La Kaffa.
La Kaffa stated, the group had been actively expanding direct selling stores in 2015.
Wagokoro Tonkatsu Anzu Ginza had opened seven stores in 2015, and the total sales in January had doubled, compared to the same period last year, which was the main cause of the revenue growth of the group this month. In the beginning of this February, following Breeze Xinyi, the 14th store was opened in Vieshow Cinema Xinyi in the prosperous Xinyi shopping district, greatly increasing the share of food revenue of the group. La Kaffa further said that as the share of food products of the group continued to increase, the problem that tea drinks’ sales are usually subject to seasons would be alleviated apparently.
Another reason for La Kaffa’s revenue growth in January was the fact that the sales revenue of tea drinks had also increased greatly. La Kaffa stated, in 2015, Chatime had successfully expanded to several countries overseas, such as France, New Zealand, Brunei, and Vancouver, where are new regions of distribution. In addition, the number of stores of existing distributors in Southeast Asia had also increased, driving the growth of Chatime’s sales revenue and making it a leading brand in the global tea drink market.
La Kaffa further explained that, the growth of sales revenue in January was generated by the development of new markets, as well as the growth of sale revenue in the existing markets. La Kaffa believed that it was mainly because the successful localization of its brands, such as Chatime. In addition, due to its strict self-inspection and testing of material sources, it was able to avoid the food safety crisis and create an image of profession, safety and high quality in people’s mind, stably increasing La Kaffa’s sales in all regions.

In 2016, La Kaffa stated, the operation would focus on the direct selling store expansion of food brands. La Kaffa had released convertible bonds, and had completed its listing on January 25th. La Kaffa pointed that only by balancing the revenue shares of the company between food and drinks could the seasonal fluctuation of sales be avoided. As Duan Chun ZhenBeef Noodle, which La Kaffa had worked with, will officially open in Vieshow Cinema XInyi, Taipei, and as Wagokoro Tonkatsu Anzu Ginza will continue to expand this year, the share of food brands is expected to increase to keep the monthly revenue at its high peak.