TasFoods Limited has reported a $3.46 million annual loss despite strong revenue growth.
The developing Tasmanian-based agribusiness increased sales revenue by a thumping 32 per cent to $50.69 million in 2019 due to growth from its existing businesses and the $11.4 million acquisition of Betta Milk.
Five months of Betta Milk trading were included in the figures.
The company's net after tax loss of $3.46 million was about $2.1 million bigger than the previous year's loss.
The company said that was mostly due to a tax change of $1.17 million and $451,000 in increased depreciation from the acquisition of the Betta Milk assets and capital investment.
Operating earnings before interest, tax, depreciation and amortisation improved from negative $924,000 to negative $658,000, and were positive for the second half of the year ($50,000).
Executive chairman Shane Noble said he was pleased with the company's progress "in a year when we have rebalanced our product portfolio and continued to refine our internal resources to ensure a brand-driven focus on strong organic growth".
"The July 2019 acquisition of Betta Milk's assets has substantially increased the size and scale of our diversified dairy operations and provided us with an export-accredited dairy bottling facility.
"Together with Betta Milk's extensive Tasmanian distribution network, this will be a key contributor to our revenue and profit growth into the future."
The poultry segment continued to be TasFood's largest business unit, while dairy operations were forecast to contribute about 40 per cent of company revenue in 2020.
"The board believes that the long-term fundamentals of TasFoods' businesses are strong, with increasing demand for premium foods, especially in the dairy and poultry segments," Mr Noble said.
"The company's strategy will be to continue to expand and grow its distribution in existing and new markets by leveraging its Tasmanian heritage and the premium provenance of its brands."
Managing director and chief executive Jane Bennett said 2019 was "a year of strong growth across the TasFoods business, accompanied by a transformational acquisition that has established a strategic foundation to drive future growth".
Annual sales growth excluding Betta Milk came in at 12 per cent, thanks to a 29 per cent increase in dairy segment sales and 9 per cent for the poultry segment.