Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Keytone Dairy (KTD) has announced its positive financials and operations for the six months ending on September 30 2019
  • Its current dairy manufacturing and export business has seen strong growth this year
  • This has been highly supported by the Omniblend and Super Cubes acquisition
  • These acquisitions have expanded the company’s client base, product offerings and international presence
  • Keytone’s strategies have increased its total sales revenue to roughly $7.4 million, which is a 441 per cent increase to the prior corresponding period
  • Keytone Dairy is up 2.5 per cent today with shares trading for 41 cents each

Keytone Dairy (KTD) has announced its financial results for the six months ended September 30 2019.

The company’s existing dairy manufacturing and export business has seen strong growth this year which has been strongly supported by the strategic Omniblend acquisition.

“The company has made substantial progress in the last six months, resulting in the realisation of record revenue for the period, significantly higher than the financial results for the corresponding period of the previous year,” CEO Danny Rotman said.

Keytone’s strategies have delivered substantial revenue growth such as its total sales revenue increasing to approximately $7.4 million (441 per cent), compared to the prior corresponding period.

Keytone Dairy is a high growth and rapidly expanding business with a particular focus on international markets.

In May, the company was awarded a contract in China by Walmart’s subsidiary, Sam’s Club West, to manufacture its milk powder.

In September, Keytone secured its second Walmart China order which further established its position as a trusted milk powder supplier.

The value of orders received in September from Walmart China alone represents roughly 40 per cent of Keytone’s revenue across its entire group for the prior financial year.

Keytone’s subsidiary, Omniblend, was acquired in July of this year due to its numerous accreditations, client base and presence in the health and wellness sector.

Omniblend’s clients include leading retailers such as Bellamys, OptiSlim, Carman’s and Aldi Stores.

Adding Omniblend’s four Australian manufacturing sites to Keytone’s existing site and second purpose-built site, which is now complete, diversifies the company’s locations, revenue base and provides added operational and distribution benefits.

As part of its strategy to expand into international markets, Omniblend has introduced its own product range, starting with Tonik which is a healthy beverage range.

Through Omniblend’s facilities, Keytone Dairy will be able to manufacture high-value formulated powder products and UHT drinks.

The company is also seeking to capitalise on putting Omniblend’s multiple products through Keytone Dairy’s existing international distribution channels such as online platforms in China (JD.com, Tmall, Pinduoduo) and Chinese bricks and mortar retailers, such as Metro Retail.

Last month, Keytone Dairy bought Super Cubes, an Australian consumer lifestyle health and wellness brand.

Super Cubes also has a growing national distribution network including Woolworths and over 500 independent supermarkets. It has also recently secured national distribution with Global by Nature, Brackenbury Nutrition, Complete Health Products and Perth Health.

Keytone’s second manufacturing facility in New Zealand has moved into the licensing phase with the New Zealand of Ministry of Primary Industries, Risk Management Program, being the final phase prior to commissioning and production.

The second facility will take the company’s total manufacturing capacity from 1500 tonnes per annum, as it stands today, to 5000 tonnes per annum.

This will see significantly higher volumes of product and higher sales.

The company will continue to work closely with new clients to drive new product development.

“The company has been building its product portfolio and manufacturing capability whilst building out its distribution channels across international markets, which it is now well positioned to capitalise on to deliver value for its shareholders,” Danny added.

Keytone Dairy is up 2.5 per cent today with shares trading for 41 cents each at 12:29 pm AEDT.

KTD by the numbers
More From The Market Herald
EVE Investments (ASX:EVE) - MD and CEO, Bill Fry

" EVE Investments’ (ASX:EVE) Meluka partners with Probiotic Australia

EVE Investments’ (EVE) business, Meluka Australia, has partnered with Probiotics Australia on the back of a strong sales performance.

" Retail Food Group (ASX:RFG) prepares for lawsuit with Michel’s Patisserie

Retail Food Group (RFG) has told its investors to prepare for another class action lawsuit against the business from franchisee Michel’s Patisserie.
SunRice (ASX:SGLLV) - Chief Executive Officer, Rob Gordon

" SunRice Group (AXS:SGLLV) renews supply deals with Chinese commercial partners

SunRice Group’s (SGLLV) subsidiary Ricegrowers Singapore has entered two significant agreements with a strategic commercial partner in China.
The Market Herald Video

" Digital Wine Ventures (ASX:DW8) acquires B2B liquor business Kaddy

Digital Wine Ventures (DW8) has announced it will acquire the B2B liquor business Kaddy for $6.75 million.