Join our daily newsletter At The Bell to receive exclusive market insights
- Dairy products producer, Keytone Dairy (KTD) has seen a steep 800 per cent increase in sales during the2020 financial year
- The company generated $22.53 million in sales revenue during the year, compared to $2.51 million in the previous corresponding period
- Despite the sharp increase in sales, Keytone has reported a full-year statutory loss of $7.45 million, which was attributed to a series of one-off acquisition costs
- During the year, the company acquired Omniblend and Super Cubes, two Australia-based health and wellness brands
- The acquisitions are part of Keytone’s ongoing diversification strategy and cost the company $2.4 million in related expenses
- Keytone Dairy is up a slight 1.72 per cent with shares trading for 29.5 cents each
Keytone Dairy (KTD) has seen a steep increase in sales during the company’s 2020 financial year, rising more than 800 per cent year-on-year.
The company reported $22.53 million in sales revenue in its annual report. This is a significant increase, when compared to just $2.51 million in the previous corresponding period.
Despite the sharp increase in sales, Keytone has reported a full-year statutory loss of $7.45 million. However, much of the loss was attributable to a series of one-off acquisition costs during the year.
During the year, the company acquired Omniblend and Super Cubes, two Australia-based health and wellness brands. The acquisitions are part of Keytone’s ongoing diversification strategy and cost the company $2.4 million in related expenses.
The company also partly attributed the loss to advisory and integration expenses, redundancies, and the impact of depreciation.
In the last year, Keytone finished construction of a manufacturing facility, located in New Zealand. The facility began production late in financial year and, therefore, its full impact on the company’s annual performance remains to be seen.
Keytone recently completed a 12.5 million placement, leaving its end-of-year cash balance at $4.4 million.
Keytone Dairy’s CEO, Danny Rotman, is pleased with the company’s performance.
“Keytone Dairy has had a transformational and record year through FY20. The company’s sales revenue has grown significantly through the period across all divisions and the strategy of pivoting to higher value, higher margin proprietary products is continuing to gain traction and growing month-on-month.
“Equally the client base of the contract manufacturing private label business has continued to expand and attract global household brand names both domestically and internationally,” he said.
Danny went on to say that Keytone’s recent acquisitions and new manufacturing facility position the company well for further growth in the upcoming quarters.
Keytone Dairy is up a slight 1.72 per cent with shares trading for 29.5 cents each at 10:48 am AEST.
