Revenue has surged at fast-growing agribusiness TasFoods Limited, but profits are yet to follow.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Revenue from continuing operations climbed by 609 per cent to $14.43 million in the six months to June 30 compared to the same period a year earlier, Launceston-headquartered TasFoods said on Tuesday.
However, the company’s net loss after tax for the half of $1.83 million was 9 per cent worse than its half-year result a year earlier.
Chief executive Jane Bennett said increasing national distribution of new products would be a key area of TasFoods’ revenue growth strategy in the second half of the year.
During the half, new products released included Nichols Poultry’s Ethical Free Range chicken range, Robur Farm goat dairy hard and soft cheese products and resized Meander Valley Dairy double cream and creme fraiche products.
Ms Bennett said the company had concentrated during the half on controlling spending and finding efficiencies and cost savings.
Revenue growth would be a key focus in the current half.
Ms Bennett said the release of new premium food products and a focus on expanding production capacity had positioned TasFoods well for future revenue growth.
“We have continued to ensure that the quality of products within the Tasmanian Food Co stable of brands are at the highest standard and, importantly, that the business aligns with evolving consumer preferences for premium quality, sustainable food,” Ms Bennett said.
She said production capacity had been expanded throughout the group.
She said the extension of the Nichols Poultry contract grower network was expected to increase capacity by about 600,000 birds per year.
Equipment upgrades had increased capacity at Meander Valley Dairy, while the building of a second Shima Wasabi greenhouse would lead to doubling of production.
The greenhouse was completed in June.
The big revenue growth compared to the first six months of 2016 was largely due to the timing of acquisitions.
That period only included 11 trading days for Nichols Poultry and Shima Wasabi.
TasFoods had net assets of $33.14 million on June 30, with cash and cash equivalents of $10.75 million.
Borrowings increased from $1.01 million on December 31 to $2.72 million on June 30.
TasFoods chairman Tony Robinson said that was mostly due to the receipt of finance associated with the Meander Valley Dairy factory upgrade.
On June 30, the company held 397,660 live poultry, 611 goats, 3933 mature wasabi plants and 7020 immature wasabi plants.
Those “biological assets” were valued at $2.355 million, with the poultry and the wasabi plants each valued at slightly more than $1 million and the goats at $277,000.