- Food producer Keytone Dairy (KTD) has announced an increased sales forecast for its whole and skim milk powder products sold in China
- Nouriz Fine Food uses Keytone's New Zealand factory to manufacture its powder products, which are sold under the private label Nouriz China
- The Nouriz China powders have already brought in NZ$2.5 million (roughly A$2.37 million) in sales in the 12 months to October
- But Keytone has been advised sales for 2021 should eclipse that total, with NZ$3.1 million (around A$2.94 million) in sales forecast — a 24 per cent increase
- Shares in KTD are trading up 10.9 per cent at 25.5 cents each
Keytone Dairy (KTD) has announced an increased sales forecast for its whole and skim milk powder products sold in China.
The New Zealand food producer manufactures the products for Nouriz Fine Foods, which then sells the products under its private label brand Nouriz China.
In the 12 months to October 2020, Nouriz China's various milk powders brought in NZ$2.5 million (roughly A$2.37 million) in sales.
But the Shanghai-based company has advised Keytone that its milk powder sales for 2021 are expected to eclipse that total.
Nouriz is anticipating around NZ$3.1 million (around A$2.94 million) in sales across 2021 — representing a 24 per cent increase.
The bump in sales should translate to an increase in revenue for Keytone, though the business hasn't stated how much it expects to receive exactly.
"The forecast received from Nouriz China represents another material increase in milk powder sales to China from our facilities in New Zealand," Keytone CEO Danny Rotman commented.
"The New Zealand business continues to record strong growth and the company expects further upside against historical performance as we move into 2021 and beyond," he added.
Shares in Keytone Dairy have spiked 10.9 per cent following the announcement. The stock is trading at 25.5 cents at 12:04 pm AEDT.