How RooLife Group’s RLG Coffee Is Brewing Big Sales in China
RooLife Group Ltd has reported a 144% surge in half-year revenue to $3.75 million, driven by strong growth in proprietary product sales, notably its RLG Coffee range in China. The company also reduced its net loss by 23%, reflecting operational improvements and strategic divestments.
- Revenue up 144% to $3.75 million in HY1 FY26
- Net loss narrowed by 23% to $731,647
- RLG Coffee achieves $2 million monthly sales in December 2025
- Sale of non-core digital marketing subsidiary completed
- Successful $2 million capital raising supports growth
Strong Revenue Growth Amid Strategic Transformation
RooLife Group Ltd (ASX: RLG) has delivered a robust half-year performance for the six months ended 31 December 2025, with revenue soaring 144% to $3.75 million. This growth was primarily driven by the expansion of its proprietary product sales, particularly the RLG Coffee range in China, which has quickly gained traction in one of the world’s fastest-growing coffee markets.
The company’s strategic pivot towards product-led growth and away from resource-intensive digital marketing services is evident in the revenue mix. Product and platform sales surged to $3.47 million, while digital marketing services revenue declined, reflecting the sale of its Australian digital marketing subsidiary during the period.
Operational Highlights and Market Expansion
RooLife’s operational focus on China has yielded tangible results. The launch of RLG Coffee in Q1 FY26 progressed rapidly, achieving monthly sales of A$1 million in November and doubling to A$2 million in December 2025. The company’s multi-channel distribution strategy, spanning offline cafés, foodservice partners, supermarkets, convenience stores, and online storefronts, has created a scalable platform for continued growth.
Alongside product expansion, RooLife incorporated new China-based entities to support its coffee and food verticals, underpinning its ambition to convert initial sales momentum into repeatable, compounding volume and margin growth in the second half of FY26.
Financial Discipline and Improved Profitability
Despite the rapid scale-up, RooLife managed to improve its earnings before interest and tax (EBIT) by 24%, reducing its net loss by 23% to $731,647. This was achieved through disciplined cost management, including reductions in business development, employee, and other operational expenses.
The company’s cash position strengthened significantly, with cash and cash equivalents rising 246% to $1.81 million, supported by a successful $2 million capital raising in August 2025. This capital injection has bolstered working capital and order fulfilment capabilities, critical for sustaining growth in its high-demand product categories.
Strategic Divestments and Shareholder Activity
RooLife completed the sale of its non-core Australian digital marketing subsidiary, Choose Digital Pty Ltd, in July 2025, realising a net cash inflow of $414,365. This divestment aligns with the company’s strategy to focus on proprietary brands and scalable product sales.
Post-period, the company issued 10 million shares to Spark Plus Pte Ltd for investor relations and corporate advisory services, reflecting ongoing efforts to strengthen its corporate profile and market engagement.
Looking Ahead
RooLife Group’s half-year results mark a significant transformation phase, with the company successfully scaling its product offerings in China and improving financial metrics. The coming months will be critical as RooLife seeks to convert its early sales momentum into sustained profitability and margin expansion, particularly through its RLG Coffee and food product verticals.
Bottom Line?
RooLife’s HY1 FY26 results set the stage for a pivotal growth phase, with China expansion and product focus key to future profitability.
Questions in the middle?
- Can RooLife sustain and grow its RLG Coffee sales beyond the initial launch phase?
- What margin improvements can be expected as product sales scale and operational efficiencies deepen?
- How will the company leverage its capital raising to accelerate market penetration and product development?
