Exxe Group Announces Record Annual Revenue and Profit

• Exxe generated substantial year-over-year revenue and net income growth
• Revenue grew by 47% for the year & 11.4% for the quarter driven by M-Moto, Daskonzept lines
• Net income jumped by 84.5% for the quarter and 63.3% for the year as margins increased
• Shareholder's equity grew by 25%, aided by a major drop in long-term debt

NEW YORK, NY / ACCESSWIRE / July 6, 2022 / Exxe Group, Inc. (OTC PINK:AXXA) a diversified fintech company, has published its fiscal fourth quarter and full-year financial results for the period ended March 31, 2022.

Financial Highlights

Exxe Group generated record annual results for both revenue and net income as well as strong results for the fiscal 2022 fourth-quarter period. Revenue was $11,338,778 as compared with $10,176,590 for the same period a year ago.

Net income for the Quarter grew 84.5% to $3,032,871 versus 4Q21. This was driven by the business line mix, which carried higher gross margins.

The Gross profit margin was 61.9%, which is more akin to technology or digital company. This compares with 36.9% recorded in the year-ago period.

Exxe's focus on more profitable businesses such as M-Moto and Dazkonzept Group is bearing considerable fruit, with a quarterly net margin of 29.8%. Management believes that meaningful gross margin expansion could continue even in the current challenging economic environment.

Moreover, revenue for fiscal 2022 (FY22) reached $49,822,494, a 47% increase from $33,900,534 in the same period last year.

Gross profit margin increased by fifteen percentage points to 48.3%, up from 33.3% last year, reflecting the business mix shift which strongly made its mark in the second half of the fiscal year.

Annual net income of $10,849,864, in particular, demonstrated substantial growth year-over-year of 63.3%, aided by high growth, high-profit segments.

Shareholder's Equity rose to $173,261,253, a 25.1% gain over the $138,465,749 recorded last year. This figure is significant as it reflects a rise in assets of 15.9% from last year. Included in the change in shareholder equity is a roughly $10 million reduction in long-term debt, a key objective outlined by Management earlier in the year.

It should be noted that operating margins of 25% or greater are typically associated with firms engaged in fintech, online, and health care businesses, which remain a clear management emphasis. As such, Exxe believes that these enhanced gross profit and operating performances could continue, given the migration and evolution of Exxe's key assets toward a digital, online focus. In general, this performance also demonstrates that the Company's private equity business model is effective while surpassing internal expectations.

Notable Business Highlights

Key Exxe segments enjoyed the strong financial and operating performance. Enhanced gross, operating and net profit performances could continue, given the migration and evolution of Exxe's key assets toward a digital, online focus.

M-MOTO

For the period ended March 2022, automotive line M-MOTO recorded record revenue and earnings before interest, taxes(EBIT). Revenue of $9.195 million was 24% higher than the $7.4 million recorded last year. In addition, EBIT represents an unusually high profitability level for the industry. Management believes that sales growth rates and high profitability demonstrate the units' exceptional services and corporate efficiency. M-MOTO in particular is well-known for its rapid turnaround times in the high-end auto repair industry, resulting in considerable repeat business.

Looking ahead, leadership has just begun to explore new, large market opportunities in the heavy truck and construction segments. Even a small contribution to revenue could serve as an additional sales driver for the current fiscal year and next year as well. Meanwhile, monthly revenue continues to rise, which signals that this auto repair segment could prove to be recession-resistant, especially if customers hold on to vehicles for longer periods.

Daskonzept

The other notable performer included design agency Daskonzept Group, which generated $3.7 million in revenue and more than $1M for just 8 months' worth of business, as the deal closed in May 2021.Seasonality, recent commercial and government wins, along with the implementation of new, digital utilization concepts such as co-working and profit-sharing models, can provide the Daskonzept Group with revenue visibility into future quarters.

Looking Ahead

Despite the challenging environment, we believe our core business drivers will enjoy meaningful growth this year. While we are suspending total company forecasts pending further economic and business clarity, we look forward to providing a more detailed account of our roadmap and goals for the current fiscal year later this summer.

Dr. Eduard Nazmiev, Exxe Group CEO, commented on the strong financial performance and the Company's positioning. "We are very pleased with the quarterly and annual results, especially our operating and net income achievements. Our diverse yet integrative model is bearing more fruit with each passing quarter. During the 2022 fiscal year, we re-launched our website (www.ExxeGroup.com), acquired MMC and Dazkonzept, and added to our real estate portfolio. Plus, we made progress on the crypto and Metaverse segments while building strategic green energy positioning."

"While the current year will have its speed bumps, we believe it will serve as a landmark year for Exxe. Our high-level reorganization and management of real-world assets and digital businesses remain the backbones of our Company's top-line growth and operating profitability. As a company generating nearly $50 million in annual revenue, and net profit that is greater than our top-line of a few years ago, we believe that we are well-positioned to weather storms and generate sales, profit, and realized value ahead."

About Exxe Group

Exxe Group is a diversified fintech corporation focusing on acquisitions in the following sectors: real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance - accelerating their growth by providing both access to capital and management expertise.

For additional information please visit the Company's
Website: http://www.exxegroup.com/
Twitter: https://twitter.com/exxegroup

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," "will," "would," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release.

CONTACT:

Exxe Group IR: info@exxegroup.com

SOURCE: Exxe Group