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Jatcorp (ASX:JAT) - Managing Director, Wilton Yao (centre) - The Market Herald
Managing Director, Wilton Yao (centre)
Source: Jatcorp
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  • Jatcorp (JAT) has entered an agreement to distribute Chinese brand BabyCare products through its Australian supply chain
  • The arrangement is hoped to bring in a projected $2 million for Jatcorp over this financial year
  • The first round of BabyCare products is expected to reach the initial group of pharmacy stores by September this year
  • Jatcorp says the move is aligned with its intentions to reduce its reliance on Chinese exports
  • Jatcorp shares closed today's session in the grey to trade at 2.2 cents

Jatcorp (JAT) has entered an agreement to distribute Chinese brand BabyCare products through its Australian supply chain.

The distribution agreement gives JAT exclusive distribution rights in Australia for all BabyCare's 200,000 product catalogue.

Jatcorp said it planned to distribute these products through the existing pharmacy chains it utilised in Australia, but would also look to target supermarkets, specialist mother and baby stores and other retailers.

The arrangement is hoped to bring in some $2 million in the first financial year for Jatcorp and is anticipated to become a "material profit generator" in future years.

Jatcorp will need to meet certain annual sales targets to maintain the contract, which it indicated was around 70 per cent of quarterly procurement totals per quarter.

The company said the BabyCare distribution arrangement demonstrated a further development of its wider strategy to lessen its reliance on Australia-to-China exports.

The first round of BabyCare products is expected to reach the initial group of pharmacy stores by September this year.

Jatcorp shares closed today's session in the grey to trade at 2.2 cents.

JAT by the numbers
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