- Food producer Keytone Dairy (KTD) has released its half-yearly accounts, showing it managed to triple its profits over the period
- Normalised gross profit for the company totalled $5.9 million over the first half of FY21, up from $2 million during the first half of FY20
- Despite the increase though, KTD's gross margin did fall slightly from the same time last year, down from 27 per cent to 24 per cent.
- The overall growth in profit was spurred on by record sales growth of $24.5 million, exceeding the 12-month full year FY20 result of $22.5 million
- Keytone also reported a significant decrease in its cash burn, down 83 per cent during the December quarter to take the company cashflow positive
- The consumer stock ended the period with a cash balance of $9 million, after carrying out a $12.5 million share placement
- Shares in Keytone Dairy are trading up 2 per cent at 25.5 cents each
Food producer Keytone Dairy (KTD) has released its half-yearly accounts, revealing it managed to triple its profits during the period.
Normalised gross profit rose 199 per cent — totalling $5.9 million over the first half of FY21, up from $2 million during the first half of FY20.
Its gross margin did fall slightly on the same time last year, though — down from 27 per cent to 24 per cent.
On a reported basis, the figures were better, with gross profit rising 244 per cent on a year-on-year (YoY) basis to total $6.7 million.
The normalised results differ from the reported figures as they exclude an $817,000 gain from purchasing AusConfec and $1.3 million in share-based payments.
Overall, though, the rise in profits over the first half on FY21 was largely spurred on by record sales growth.
The company made $24.5 million during the period, exceeding its 12-month full-year result for FY20 of $22.5 million.
That translates to a 233 per cent increase in sales revenue YoY, with the Australian arm of business recording revenues of $19.2 million and the New Zealand business recording $5.3 million in sales.
Commenting on the success, Keytone Dairy CEO Danny Rotman said he was extremely pleased with the results given the current economic environment.
"The first half of Keytone’s FY21 year has been a half like no other, as despite the onset of the COVID19 pandemic, the business has continued to grow," he said.
In the meantime, along with the sales and profit growth, Keytone also reported a significant reduction in its cash burn over the period.
In particular, the company said during Q2 FY21 it has reduced its operation expenses by 83 per cent to go cash flow positive from September.
At the end of the period, Keytone reported a cash balance of $9 million, boosted via a $12.5 million share placement carried out by the company.
Shares in Keytone Dairy are currently up 2 per cent, trading at 25.5 cents each at 2:08 pm AEDT.