Profitability Continues Amid COVID with Ongoing Expansion in the Caribbean Grocery and Retail Product Sales: OM Holdings International, Inc. (OTC: OMHI)
– Operator of Successful, OneMart Grocery in the British Virgin Islands.
– Revenue for Year ended December 31, 2020 of $28 Million with $3.8 million in Operating Profits. Consistent Year Over Year Growth Since 1986.
– Uber-, Grubhub-, and Instacart-like Platform to Uniquely Satisfies the Needs of Local On-Demand Economies (LODE) in the Caribbean.
– Continued Profitability Reported in Third Quarter/Nine Months Results.
– 5-Year LODE-TECH Contract with Jamaica’s Largest Taxicab Union.
– Construction of New 34,000 Sq. Ft. Super Store Underway.
OM Holdings International, Inc. (OTC PINK:OMHI) operates a multi-tenant on-demand technology platform for the delivery of goods and services throughout the Caribbean from a single mobile app. OMHI vertically integrates contactless delivery of these essentials, while simultaneously providing multi-modal transportation.
OMHI was formed through the fusion of Rydeum, an on-demand technology platform founded by Mark Hannah in 2019, and OneMart, a 35-year-old grocery store founded by Mark Vanterpool in 1986. The OMHI technology subsidiary, Rydeum partnered with Jamaica’s largest taxicab union (12,000 drivers) in 2021. This segment provides an Uber-, Grubhub-, and Instacart-like platform which uniquely satisfies the needs of local on-demand economies (LODE) in the Caribbean. The OMHI storefront and essential goods subsidiary, OneMart is the second largest grocery provider in the British Virgin Islands. This segment offers groceries, home goods, electronics, furniture, and some building supplies – just like Walmart. It sells wholesales products to restaurants and hospitality venues and caters to retail customers as well.
– OMHI Reports Continued Profitability in Third Quarter/Nine Months Results
On July 20th OMHI announced its results for the third quarter, which ended on May 31, 2021.
Although government pandemic regulations were put into effect during the first quarter, OMHI retained all employees and was able to fully-service all customers, either in-store or via delivery, and provide them with the high-quality goods and services they expect from OneMart.
OMHI greatly expanded its marketing initiatives during the third quarter and nine months ended May 31, 2021 and is already seeing increases in its business from these programs, especially in the charter boat and luxury yacht market; historically, this is the largest expansion program undertaken by the company.
During the nine months ended May 31, 2021, OMHI announced the construction of two new stores in the British Virgin Islands; in addition to these new stores OMHI management is considering four additional sites for new superstores. With its technology subsidiary Rydeum Caribbean and its new stores, OMHI has seen the largest expansion program in company history. Management anticipates increased revenue from these activities by the end of the fiscal 2022.
THIRD QUARTER/NINE MONTHS RESULTS
– OMHI nine months sales performance compared to fiscal year ended August 31, 2020, was lower by 4% despite the negative effects of Covid-19 pandemic on the economy during the nine months reporting period. The third quarter reflected less than 1% difference. This demonstrates the resilient nature of the business even during such a pandemic.
– For the third quarter ended May 31, 2021, sales revenue reached $7,361,292 as compared to $7,421,909 for the same prior year period; for the nine months ended May 31, 2021, revenue reached $20,629,528 as compared to $21,493,749 for the same prior year period.
– The net Income for nine months which exceeded $1 million, reflected a 5% decrease over the previous year because of the COVID pandemic effect.
– For the nine months ended May 31, 2021, shares were 47,101,422, as compared to 44,400,596 the same prior year period.
BUSINESS UPDATE
Significant progress has been made at both new stores under construction. The construction of the OMHI new 34,000 square foot supermarket in Fat Hogs Bay (East End) British Virgin Islands (BVI) is expected to be completed by the end of 2021. The store will be similar to the company’s first store, but larger so it can offer even more goods, including food, clothing, appliances, furniture, electronics and general household items – everything shoppers need for one stop shopping. It will provide adequate parking compared to its competitors in the area.
The OMHI new store concept, OM Builders Depot, will be in Port Purcell, near the main port and the capital Road Town on Tortola, BVI. OM Builders Depot will comprise 15,000 square feet and will provide building materials, hardware and tools, home appliances, cement, paint and plumbing supplies to builders and contractors. White sand, gravel, rebars, blocks and lumber will be available for purchase outside the building.
OMHI has signed a long-term lease on an acre of property for the Builders Depot store – its land costs are minimal, and the company expects significant profits and growth from this store. Builders Depot is 200 feet from the first OneMart and several miles from the new store, where construction is underway. OM Builders Depot building, and inventory will cost $3 million. This store is expected to add $5 million in sales to the OMHI Group in the first 9 months (December 2021 – August 2022) and over $500,000 dollars in operating profits.
Rydeum Caribbean, Inc. has a regional exclusive software license and IT managed services agreement with Rydeum Technologies, Inc., based in Atlanta, GA. These exclusive agreements allow Rydeum Caribbean, Inc. to efficiently launch LODE-TECH in Jamaica and in 27 additional Caribbean countries. Rydeum Technologies, Inc. is in the process of applying for three U.S. patents for a novel decentralized architecture which will have the ability to power multiple Local On-Demand Economies, allowing local businesses to easily onboard and enable customers to obtain transportation, delivery, and professional services via a single mobile app.
OMHI will vertically integrate Local-On-Demand Economy (LODE) technologies to power the purchase and delivery of retail merchandise and services for all customers throughout the Caribbean. Via Rydeum’s DoGetGo app, customers will be able to shop at the company’s stores from their smartphones have their purchases delivered; the app also enables both residents and visitors to get around the island by car.
– 5-Year LODE-TECH Contract with Jamaica’s Largest Taxicab Union (JUTA) with 12,000 Drivers
On July 13th OMHI announced its first business to business (B2B), Local On-Demand Technology (LODE-TECH) contract with the largest taxicab company in Jamaica. Rydeum Caribbean, Inc., which was acquired from Rydeum Technologies, is developing a platform to connect multiple established businesses with local consumers through an on-demand mobile app.
Rydeum Caribbean, Inc. has a regional exclusive software license and IT managed services agreement with Rydeum Technologies, Inc., based in Atlanta, GA. These exclusive agreements allow Rydeum Caribbean, Inc. to efficiently launch LODE-TECH in 27 additional Caribbean countries at a fairly rapid pace. Rydeum Technologies, Inc. is in the process of applying for three U.S. patents for a novel decentralized architecture which will have the ability to power multiple Local On-Demand Economies, allowing numerous local businesses to onboard and many customers to obtain transportation, delivery, and professional services via a single mobile app.
OMHI will vertically integrate Local-On Demand Economy (LODE) technologies to power the purchase and delivery of retail merchandise and services for all of its customers. Via the app DoGetGo, customers will be able to shop OMHI superstores and the company’s Builders Depot from their phones and have these purchases delivered. It supports less expensive ordering and delivery from restaurants which have struggled to profitably offer delivery services. The app also enables people, both residents and visitors, to get around by car.
In Jamaica, Rydeum executed a 5-year contract with the Jamaican Union of Travelers Association (JUTA), a not-for-profit organization based in Montego Bay. JUTA, founded in 1960 with 50 drivers, now boasts 12,000 drivers. Rydeum Caribbean will receive a percentage of gross bookings from JUTA that is typical for mobile app providers in the transportation industry. Rydeum’s relationship with JUTA will position the company to expand beyond transportation into delivery and other professional services that require drivers in Jamaica.
The Rydeum platform can be adapted for many business-to-consumer (B2C) and peer-to-peer (P2P) business needs, and OMHI intends to approach third-party vendors in Jamaica to expand the use of DoGetGo throughout the country.
– Construction of New 34,000 SQ. FT. Super Store on Tortola, British Virgin Islands – Anticipated Opening Before End of 2021
On May 25th OMHI announced it has broken ground on its second location: the construction of its 34,000 square foot supermarket in Fat Hogs Bay (East End) British Virgin Islands (BVI) and will be completed by the end of 2021. The store will be located on 5 acres, which will give OMHI ample room for expansion; the property has a 50-year lease and offers ample parking. This new store will be similar to the first OHMI store, but larger so it can offer even more goods, including food, clothing, appliances, furniture, electronics and general household items – everything shoppers need for one stop shopping. Tere will be groceries and cash and carry, appliances, household items and electronics, furniture and accessories available.
The first OMHI store, OneMart, reported revenue for the year ended December 31, 2020 of $28 million dollars and $3.8 million in operating profits. Since it was completed in 1986 the store has seen year over year growth, even during 2020 during the global Covid-19 pandemic. The first OneMart, located in Road Town in Port Purcell, Tortola, is one of the leading food service providers for residents and tourists, as well as for hotels, restaurants, charter boats and yacht provisioning. OMHI management has developed a plan based on the success of OneMart to open a number of stores throughout the Caribbean.
With construction now underway the OMHI management team is aggressively looking for several additional sites in the Caribbean to build comparable stores. Prior to the virus, BVI alone had 400,000 visitors who stayed an average of seven days; coupled with a population of 50,000 permanent residents, this makes BVI very attractive for growth.
– OMHI Five-Year Growth Plan
Over the last several months the OMHI management team and board of directors have put a five-year growth plan in motion, and expects to build and open additional stores, not only in the BVI, but throughout the Caribbean. The locations being considered are all in densely populated areas, and OMHI expects some of the new stores to be much larger than its first store. These retail centers will also serve as logistic hubs throughout the Caribbean. These logistics hubs will help to reduce consumer prices for the 42.7 million residents of the Caribbean.
OMHI is also exploring the possibility of expanding into building materials to give retail and commercial customers additional products and services. The OMHI philosophy is that store sales are driven by empowering people to access products of all kinds through physical purchases and technology.
The OMHI management team, based in the Caribbean and in the United States, comprises professionals who have spent on average 20 years in the business and know how to build stores from first shovel to opening, on time and within budget, and their expertise in buying in greater volumes and high quality consistently satisfies our customers. This will also add value to the OMHI bottom line.
As Covid-19 accelerated worldwide demand for contactless payments, and over the next 12 months OMHI expects to combine contactless logistics technology with its retail business to vertically integrate a LOCAL ON-DEMAND ECONOMY (LODETECH) within the Caribbean and other underserved markets.
OMHI customers will be able to open an app on any mobile device, place an order for pick up or delivery. The convenience factor is a major marketing tool. OMHI will take charge of the supply chain, manage all logistics and associated costs to bring lower cost goods to island nations in the Caribbean. OMHI envisions its LODETECH as a single platform for the provision of a comprehensive and ever-expanding range of direct services.
For more information on OM Holdings International, Inc. (OMHI) visit: https://omholdingsinc.com.
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