The Candy Club share price is currently trading for 22 cents per share.

Candy Club is a confectionary retailer that specialises in retailing candy boxes in both B2B and B2C markets. It's heavily US-centric and garners most of its revenue from either B2B or supplying huge US retail chains.

Candy Club revenue increases

Candy Club announced its results today for the three months ending 31 March 2021: its first-quarter FY2021 results. 

The company has made total gross revenue of US$4.13 million in 1Q FY2021, representing an increase of 192% year-on-year (YoY). This was driven by its B2B division, which posted US$3.4 million gross revenue during the quarter.

This is a 21% increase quarter-on-quarter (QoQ), or 423% growth YoY. The company says this is particularly impressive considering the "persistent headwinds" created by the coronavirus pandemic.

The company's B2C business also experienced good growth in the period, as it was up 49% versus the prior quarter. 

Customer increases heavily US-focused

The company's total number of retail doors grew further to more than 17,000. At the same time, the number of B2B customers exceeded 10,000 as of 1Q FY2021.

Its larger brick-and-mortar customers continued to grow QoQ. Additionally, the majority of its existing national and regional department and gift store chains reordering.

The company also added several impressive new account wins including the giant US national retailer JC Penny. Fellow rival Macy's has also expanded Candy Club's presence by selling the company's candies in more stores and expecting further growth. Re-order rates for the company's top 25 customers held over 90% for the quarter.

Candy Club expecting future growth

While Candy Club's U.S. results appear strong, Australian investors are obviously less excited by the news. Furthermore, the Candy Club share price has remained flat. Nevertheless, the company expects strong growth moving forward.

Candy Club's B2B division remained strong in 1Q FY2021, achieving quarterly record revenue of approximately US$3.4 million. The company's strong performance comes amid the challenging operating environment in the US, which continued to be impacted by the COVID-19 pandemic.

While the thousands of small businesses derived from the company's e-commerce strategy are driving the recent growth, Candy Club expects the traditional US brick-and-mortar retailers to significantly grow the company's overall business by 2H FY2021.

Candy Club share price movements

The Candy Club share price is down more than 6% over the past week and month, but the company has gained more than 300% over the past 12 months.

The post Candy Club (ASX:CLB) share price flat despite 192% revenue increase appeared first on The Motley Fool Australia.

Candy Club is a confectionary retailer. The business primarily engaged in both business-to-consumer (B2C) and business-to-business (B2B) markets. Candy Club is established in the US market, however, it also has an Australian presence.

Under its B2C business, the company sells subscriptions plans for its Candy Boxes in the USA. Furthermore, the B2B business involves the selling of Candy Club branded confectionery to specialty market resellers in the USA. 

Why is Candy Club raising the capital?

Candy Club's announcement today is regarding the successful completion of an institutional placement. This comes from the issue of 48.6 million fully paid ordinary shares at 22 cents per share to raise approximately $10.7 million before costs.

Candy Club's wholly-owned US subsidiary, Candy Club Holdings Inc., has also secured US$7.5 million (A$9.84 million) in debt funding. This comes from Venture Lending & Leasing IX Inc. who is a part of a leading Silicon Valley equity/debt venture firm called Western Technology Investment (WTI). 

Candy Club says the capital raised is "to be invested in considerably scaling the business". The funds raised under the placement will be used for:

• Acquisition of Inventory – $4.4m
• Customer Acquisition Lead Generation campaigns – $1m
• CAPEX – $500k
• Increased Sales Staff – $500k
• General Working Capital – $3.8m
• Costs of the offer – $500k

What Candy Club management said

Candy Club chair James Baillieu explained the debt and placement combination: 

By bundling the WTI debt deal with the placement, we substantially reduced the amount of shareholder dilution to reach our new capital target, as well as raising from institutions and sophisticated investors a large amount of equity successfully at only a small discount to market price.

Candy Club share price snapshot

The Candy Club share price losses today are part of a broader trend. Furthermore, the company's share price has declined by 12% this month.

However, this comes against large gains over the past 12 months. Candy Club's share price has risen 528% in that timeframe, beating the consumer defensive sector by 525%.

It's also up 67% in 2021 so far.

The post Why is the Candy Club (ASX:CLB) share price falling today? appeared first on The Motley Fool Australia.

Here are 3 sugary shares you can find on the ASX.

Shares for chocolate lovers 

Candy Club Holdings Ltd (ASX: CLB) 

While not necessarily a chocolate making company, Candy Club deserves its spot on this list.

To be honest, a lolly subscription service is genius. And, experts do say to invest in companies you understand. I'm sure most Australians would understand the appeal of a box of lollies arriving on your doorstep each month.  

Candy Club's selection of adorable sugary treats, some of which are indeed chocolate, may well be your next great investment.

Candy Club's share price is experiencing a sugar high. It's up more than 73% year to date, and 462.5% over the last 12 months. 

The company has a market capitalisation of around $69 million, with approximately 308 million shares outstanding. 

Keytone Dairy Corp Ltd (ASX: KTD)

Milk chocolate is a favourite for many come Easter time, and this dairy company has got you covered in more ways than just milk.

Keytone Dairy is the owner of fudging making brand, Gran's. Gran's promises delicious, handcrafted, luxury fudge. If that doesn't sound like an Easter Sunday afternoon snack, I don't know what does.

The Keytone Dairy share price has had a bit of a rough trot in March, so those who believe in chocolatey fudge may just find themselves a bargain.

Keytone Dairy has a market capitalisation of around $46 million, with approximately 273 million shares outstanding.

FFI Holdings Ltd (ASX: FFI)

FFI Holdings is possibly better known as Fresh Food Industries. The Australian owned and operated food supplier has been around since 1979. Generally a wholesaling company, you may not see too many of its chocolatey products on supermarket shelves. But, there's a strong likelihood you've enjoyed them in muffins, cookies or ice creams in eateries all around Australia.

The company's shares are up by 25% over the last 12 months.

FFI Holdings has a market capitalisation of around $64 million, with approximately 10 million shares outstanding.

The post In honour of the Easter Bunny, we take a look at 3 chocolatey ASX shares appeared first on The Motley Fool Australia.