Atlas Pearls Ltd (ASX: $ATP) update on Kobe auction and Q3 FY24 sales

Atlas Pearls Ltd (ASX: $ATP) has reported a successful Kobe auction, realizing sales of 68,786 pieces at $68.60/piece, generating a revenue of $4.7m. The company's cash position post auction close stands at $16.5m as of April 19th, 2024. The sales strategy has pivoted in response to market dynamics, with total March year-to-date revenue up 72% year on year to $29.7M, despite no major auction in Q3 FY24 compared to Q3 FY23. The quality index of pearls produced continues to improve.

Executive Commentary on Sales Strategy and Market Conditions

Atlas Pearls CEO, Michael Ricci, highlighted the company's strengthened financial position, enabling a shift in the sales strategy to maximize the value of every pearl produced. The company plans to explore alternative sales channels to achieve higher returns, indicating a potential increase in inventories for the next financial year. Ricci emphasized the company's focus on continuous improvement programs, data-driven decisions, and the pursuit of a sustainable business in a historically volatile market. He also mentioned the transportation of 50,000 shells to lines installed at the new farm in Sumba as part of the company's expansion plans.

Summary of Kobe Auction Results and Sales Strategy Pivot

Atlas Pearls reported a successful Kobe auction, achieving $4.7m in revenue and a cash position of $16.5m post auction close. The company's sales strategy has shifted to retain stock when market conditions undervalue products, focusing on alternative sales channels to maximize value. Despite no major auction in Q3 FY24, the total March year-to-date revenue increased by 72% year on year to $29.7M. The company continues to improve the quality index of pearls produced and aims to build a sustainable business in a historically volatile market. With a focus on productivity, quality, and maximizing the value of every pearl, Atlas Pearls looks to adapt to market conditions and maximize the value of its pearls through other sales channels and markets, with the next Kobe auction scheduled for June 2024.