KoRo 2 | Updates

By Constantinos Calios

What does the growth financing mean for KoRo?

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Public

Dear Companists,

As part of our second campaign, we are reporting with our first update. We are overwhelmed by the successful start of the campaign and the great popularity we receive before and during the campaign. We would like to thank you for that.

The first update is intended to take a closer look at our sourcing focus. As already explained in the first news during the live campaign, KoRo's planning for strategic development and the associated sales and financial planning have changed. We therefore published a conservative financial plan to show that even in a worst-case plan, which we have currently exceeded, we would still be in a position to repay the venture loan according to its term.

The aim of this campaign is to invest 70% of the collected capital in working capital. In detail:

 

I. working capital

In the context of the growth of a trading company, which buys and sells goods, a stock matching the turnover is necessary in order to be able to stock enough goods not to be sold out at any time. KoRo has a stock turnover rate of 4 weeks. This means that we have sold out our stock after 4 weeks at the latest. In addition, with our current sourcing plan to add 5-15 new products per month to our range, we have to invest a not inconsiderable amount in our warehouse.

For comparison, the stock values at the end of the month are listed once:

  • January: 214.462,00 Euro
  • February: 293.772,00 Euro
  • March: 381.626,00 Euro
  • April: 460.000,00 Euro

 

The development of the stock value shows that the share of having to tie up capital in goods is increasing. In addition, we have to pay in advance for new products that we purchase from new suppliers. Payment terms are often set only after several orders have been placed. These products usually have a longer delivery time. Here is an exemplary list from February 2019, which products these were and what proportion of capital was tied up and the products could not yet be sold off: 

  • Maple syrup and maple butter (from Canada, by sea freight 3 months) - Cost of goods = 15 TEUR
  • Bread box (from China, by sea freight 3 months) - Cost of goods = 20 TEUR
  • CBD Oil (from Germany, lead time 1.5 months) = 15 TEUR
  • Cashew kernels and almonds trade level skipped (lead time 4-6 weeks) = 23 TEUR
  • White chocolate with maltitol sweetness (4-6 weeks) = 14 TEUR
  • High-performance mixer (3 months) = 7 TEUR

 

For products that we have to have bottled after import, we have built up a network of various bottlers spread all over Germany. Here we work together with 4 bottlers, which we control centrally via our ERP system and thus see which goods and how much is where.

 

II. sourcing plan

The sourcing focus is on broadening the range more so that regular customers buy more and more long-life foods from KoRo. We shot a short video where Nicole, our Head of Purchasing, says a few words about it.

 

Our central organization is handled by our project management software, where we keep track of the status of all products and projects and manage internal deadlines.

We hope to have once again given you a great insight into our work processes. In the next update we will introduce you in detail what we will do with the other 30% of the capital to be collected.

 

Best regards,

Kosta



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€ 637,250

Invested

€ 1,391

Average Investment

7% p.a.

annual interest VL VENTURE LOAN

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