Rentals of pallets in the third quarter are expected to have risen some 85% quarter-on-quarter, as the result of the company’s largest egg vendor contract, announced on May 26, kicking in.
During the quarter the company secured a lease for a new pallet-washing facility in Atlanta and it revealed in its operational update it is working to install wash and sanitization equipment of the kind used in its two other washing facilities (in Ohio and Pennsylvania).
The company revealed that one of the main drivers for adoption of its services in recent months, as cited by both egg vendors and retailers, has been the safe quality foods (SQF) certification the company received for the wash/sanitization process at the Ohio wash facility, which ensures a bio-secure pallet delivered to the company’s client production sites.
The certification was granted following a third party audit of the sanitization process and facility in Ohio, and the company plans to seek SQF certification at each new wash facility it opens to ensure consistency of bio-security qualifications across its entire pallet pool.
Axios boasts the only pooled pallet service and offering to wash/sanitize its pallet after each and every use, the company said.
With the roll-out of the Midwest and north-east regions completed, Axios is now driving into the south-east and south-central regions of the United States, it told investors.
All of Axios’s largest retailer’s distribution centres in these areas are supplied by vendors currently under contract to Axios; therefore, as the company continues its expansion into these areas, it expects that all additions to the Axios pallet inventory will quickly flow into the circulation and begin producing revenue.
“The third quarter’s operational milestones generated increased interest in Axios from customers and prospects,” said Richard MacDonald, Axios’s president and chief executive officer.
Among those milestones was a $5mln in loans that will enable the company to invest for growth.
“Our ability to secure capital allowed us to meet some of the increasing demand for our products, and we are confident that we can continue to drive revenue growth and improve operational efficiency in the fourth quarter and beyond,” MacDonald said.
Shares rose 6.4% to C$0.50 on the operational update.
Story by ProactiveInvestors