RooLife Group Limited (ASX, RLG) reported a strong Q2 FY2026 with revenue climbing to $3.25 million, driven by rapid growth in its RLG Coffee range in China. The company’s lean, data-driven marketplace model is scaling efficiently despite expected seasonal slowdowns.
- Q2 FY2026 revenue surged to $3.25 million
- RLG Coffee sales hit $1 million in November and $2 million in December 2025
- Operating costs of $2.04 million with staff costs down 35%
- Closing cash and financing facilities increased to $2.06 million
- Temporary sales slowdown expected during Chinese New Year
Strong Revenue Growth Fueled by Coffee Expansion
RooLife Group Limited (ASX, RLG) has delivered a robust performance in the second quarter of fiscal 2026, with revenue reaching $3.25 million. This marks a significant jump from previous quarters, largely propelled by the rapid sales expansion of its RLG Coffee range in China. The company achieved $1 million in coffee-led sales in November 2025, doubling to $2 million in December, underscoring strong consumer demand in one of the world’s fastest-growing coffee markets.
A Lean, Data-Driven Marketplace Model
RLG’s marketplace operates on a lean, technology-enabled model that leverages data-driven insights to tailor product offerings by region. By focusing on high-demand categories and scalable distribution channels, the company efficiently meets consumer needs while maintaining healthy profit margins. The marketplace also acts as a cross-border bridge, bringing international brands into China and distributing Chinese-sourced products to Western markets, positioning RLG uniquely in global e-commerce.
Cost Management and Cash Position
Despite the surge in sales, RLG maintained disciplined cost control. Product manufacturing and operating costs for the quarter were $2.04 million, reflecting the need to meet growing order volumes. Notably, staff costs fell by 35% compared to the prior quarter, highlighting the company’s lean operational approach. Closing cash and available financing facilities rose to $2.06 million, providing a solid foundation for continued investment in inventory, marketing, and channel expansion.
Outlook and Seasonal Considerations
Looking ahead to Q3 FY2026, RLG aims to convert its China distribution channels into repeatable monthly sales and further scale its coffee and food verticals. The company anticipates a temporary slowdown in sales during the Chinese New Year period in February due to typical supply chain and distribution disruptions. However, it expects sales momentum to resume strongly post-holiday, supported by ongoing product development and multi-channel distribution strategies.
Strategic Focus on Growth and Investor Engagement
RLG plans to continue expanding its sub-distribution networks into supermarkets, convenience stores, and offline café and foodservice partners. It also intends to maintain a disciplined cost base while directing capital towards order fulfilment and marketing. Additionally, the company will actively engage with investors across Asia and Australia in the coming months to support its growth ambitions.
Bottom Line?
RLG’s Q2 momentum sets the stage for scaling coffee sales in China, but investors should watch for the impact of seasonal slowdowns and execution risks.
Questions in the middle?
- How will RLG manage supply chain challenges during and after the Chinese New Year?
- Can the company sustain its rapid sales growth while maintaining lean operations?
- What are the implications of related party payments on governance and investor confidence?