Dairy product sales have been growing strongly for TasFoods Limited, even before its Betta Milk acquisition washes into the numbers.
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The growing Tasmanian agribusiness said dairy sales from existing operations increased by 46 per cent in the six months to June 30.
Chairman Shane Noble said that reflected growing demand for its products and greater availability in stores.
"Our dairy business offering in national retail chains continues to grow in (the current half-year), with the first consignment of Meander Valley Dairy Creme Fraiche having been shipped to Coles in August for supply to 680 stores nationally," Mr Noble said.
"Poultry sales in the second half will benefit from additional capacity provided by the recently completed growing sheds at Nichols Poultry.
"These sheds will increase by 10 per cent the chicken available for sale from October 2019."
He said the $11.5 million acquisition of Betta Milk was transformational for TasFoods and would give it greater balance between its dairy and poultry operations.
"It provides us with new revenue streams, excess capacity to allow further growth and access to a Tasmanian statewide distribution network," Mr Noble said.
"While it is early days, we are beginning to benefit from the revenue opportunities and cost synergies we anticipated, especially in expanded distribution, lower distribution costs and increased purchasing power."
TasFoods reported $20.8 million in sales revenue for the half-year.
That was up by 13 per cent from the corresponding period in 2018, helped by a 22 per cent increase in interstate sales.
An underlying net loss before interest, tax, depreciation and amortisation of $704,000 was a $14,000 improvement on the prior corresponding period.
TasFoods confirmed its guidance that it would have positive earnings before interest, tax, depreciation and amortisation from existing operations excluding Betta for the year to December 31.
"This will be a significant step in building a profitable premium food company capitalising on Tasmania's unique environment and reputation," Mr Noble said.
The company said Betta, which was acquired on July 31, was expected to make a contribution to earnings during the current half.
TasFoods said it had continued to focus on cost control, labour efficiency and optimising the business.
