- Happy Valley Nutrition (HVM) traded strong today on the back of a quarter of unexpectedly low spending
- In its latest quarterly financial report, the company said it was able to hit some key milestones over the three months to December 31, 2020
- These include land purchase for a main facility site and New Zealand Overseas Investment Office (OIO) approval to buy some farmland
- Importantly, the company was able to achieve this by spending NZ$3.5 million (roughly A$3.25 million) less than expected over the quarter
- Happy Valley spent NZ$1.62 million (roughly A$1.5 million) over the December quarter
- With NZ$6 million (roughly A$5.6 million) in the bank at the start of January, the company has enough cash to last four financial quarters at December spending levels
- Shares in Happy Valley closed almost 9 per cent higher today at 18 cents eachß
Happy Valley Nutrition (HVM) traded strong today on the back of a quarter of unexpectedly low spending.
The company released its quarterly financial report for the three months to the end of December 2020 today.
In the report, the New Zealand-based infant formula specialist highlighted some key milestone achieved over the quarter — including the purchase of a location for its main facility site.
Over the quarter, the company also received New Zealand Overseas Investment Office (OIO) approval to buy some important farmland.
Importantly, however, the company said spending over the quarter came in far lower than expected. Happy Valley achieved these milestones with just NZ$1.62 million (around A$1.5 million) in spending over the quarter, which is NZ$3.5 million (around A$3.25 million) less than expected quarterly costs.
Happy Valley attributed lower technical and engineering design costs, deferred settlement of land purchases, and general savings across consultancy and travel for the soft spending.
All up, Happy Valley has spent roughly NZ$3.16 million (around A$2.9 million) on operating and investing activities for the first six months of the 2021 financial year.
Nevertheless, the company still had NZ$6 million (around A$5.6 million) in the bank at the start of January, meaning at December levels of spending, Happy Valley can still survive for four financial quarters before needing to turn to investors for some extra cash.
Investors seemed pleased with the quarterly update, with Happy Valley shares closing 8.82 per cent higher at 18 cents each this afternoon. The company has a $39.32 million market cap.