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Australian dairy: The M&A story for 2020
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  • Keytone Dairy's (KTD) newly released annual report shows it ended FY21 with an $8.19 million loss, despite a huge surge in sales
  • The dairy and wellness business recorded a 125 per cent increase in revenue, totalling $50.7 million, after every sector of the business saw sales increase
  • But cost of sales and operating expenses quickly ate into that margin, leaving KTD with an increased loss, up 10 per cent of last year's $7.45 million loss
  • No dividends were issued throughout the year, same as last year, and KTD will not issue any end-of-year dividend to shareholders
  • The company spent most of FY21 investing in itself by launching new brands, acquiring Aus Confec and increasing inventory
  • Looking ahead, Keytone believes a number of international orders will be received and distributed throughout FY22
  • It also noted COVID-19 continued to hamper the company's expansion efforts, specifically affecting its logistics operations
  • Following the FY21 annual report release, shares in KTD are up 3.7 per cent at 14 cents per share

Keytone Dairy's (KTD) newly released annual report shows it ended FY21 with an $8.19 million loss, despite a huge surge in sales across all brands.

The dairy and wellness business recorded a 125 per cent increase in revenue over the 2021 financial year, totalling $50.7 million at the end of March.

The jump in revenue follows sales increases being recorded in every sector of the business, with company brands alone rising 545 per cent year on year.

But Keytone's cost of sales and operating expenses quickly ate into that margin, leaving KTD with an increased loss of $8.19 million, up 10 per cent on last year's $7.45 million loss.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 4 per cent year on year, but still finished $2.3 million in the red.

Shareholders were not issued any dividends throughout the year, following the same pattern as last year, and KTD will not issue any end-of-year dividend.

Commenting on its financial results, Keytone explained it spent most of FY21 investing in itself by launching new brands, acquiring Aus Confec and increasing inventory.

Looking ahead, KTD believes a number of international orders will be received and distributed throughout FY22 helping to improve margins.

It also noted COVID-19 continued to hamper the company's expansion efforts throughout FY21, specifically affecting its logistics operations.

"The full twelve-month result realised by Keytone through the financial year 2021 has been extraordinary given the operating environment and the unprecedented impact COVID-19 has had," CEO Danny Rotman said.

"We have seen customer volumes grow throughout the period despite the macro and economic headwinds, as well as the successful pursuit of our own proprietary branded strategy with increased product ranging and distribution in key channels," he said.

"Keytone is well positioned for FY22 and beyond and we will continue to pursue our strategic objectives as the trajectory of the group continues to move towards profitability and consistent net cash generation quarter-on-quarter," he added.

Following the FY21 annual report release, shares in Keytone Dairy are up 3.7 per cent at 14 cents per share at 11:52 am AEST.

KTD by the numbers
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