- AHF will earn an extra one million in the FY20 due to an increase in milk prices to the company’s supplier.
- The company’s brand Camperdown Dairy is stocked in popular supermarkets in Victoria
- AHF is working on rolling out a new brand to be distributed nationally and a infant formula plant is expected to arrive next month
- The company’s share price today sits at a six per cent increase
The Australian Dairy Nutritionals Group (AHF) has locked in a price increase for its milk products. Earnings before interest, taxes, depreciation and amortisation is expected to raise between $1.1 million and $1.3 million.
The company’s milk supply agreement is with a fellow dairy company, Australian Consolidated Milk. The price increase will take effect during the 2020 financial year and the agreement will last one year.
The increased pricing applies to AHF’s organic and non-organic milk ranges which exceed the company’s own processing requirements.
The company’s own brand is Camperdown Dairy, which is stocked in Woolworths, Coles and IGAs across Victoria. Home delivery options are available across Australia.
AHF is expecting to receive full organic certification by November this year for its Yaringa farm. According to the company, excess organic milk which exceeds the required amount for Camperdown dairy will be sold at a significant premium to Australian Consolidated Milk.
Once the organic certification has been achieved, the company intend to issue a Camperdown Dairy organic range. Distribution partnerships for the products are currently being determined.
Additionally, next month the company are expecting the arrival of its infant formula plant. While work on a new brand, Echlin South, continues with an expected roll out during the 2020 financial year. The company are looking to distribute Echlin South products nationally.
Following the announcement, AHF’s share price has increased, peaking at 12 per cent, but currently sitting a six per cent increase at $0.17 a share.