TasFoods Limited has reported a strong financial improvement despite recently dumping its 2020 performance guidance amid the coronavirus downturn.
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The growing Tasmanian agribusiness reported earnings before interest, tax, depreciation and amortisation of $383,000 for the March quarter.
That was a $570,000 turnaround from negative $187,000 in the corresponding quarter a year earlier.
Sales revenue jumped by 62 percent to $16.77 million.
The results were boosted by sales revenue from Burnie-based Betta Milk, which TasFoods acquired in the September quarter of 2019.
However, sales revenue from the company's existing operations not including Betta Milk also improved.
They were 11 per cent stronger than in the March quarter of 2019.
Launceston-headquartered TasFoods said a 13 per cent sales revenue increase for Betta Milk over the December quarter continued to drive dairy sales revenue growth in the March quarter.
"Sales for the Tassie Taste white milk brand released in December 2019 continued to exceed budget forecasts, growing further in late March as more Tasmanian consumers shopped at independent retail outlets," TasFoods said in its March quarter report.
It said chicken sales increased by 4 per cent compared to the December quarter because of having more meat available for sale and strong demand.
"Whilst the first quarter results are very pleasing for the company, the business has been affected during the period by COVID-19 and continues to navigate the changing business environment resulting from the global pandemic," it said.
"The impact of COVID-19 on the tourism and hospitality industries resulted in the difficult decision to close the Pyengana Dairy Cafe and the reduction of fresh wasabi harvesting operations at Shima Wasabi in late March.
"Employees of each of these business operations are eligible for the JobKeeper payment through which they continue to be paid in readiness for the market conditions to return to a point where these operations can recommence."
It said economic conditions related to the pandemic would influence the operating environment for the foreseeable future.
Coronavirus-driven changes to the food services sector contributed to a fall in chicken and wasabi sales revenue in April, while dairy sales remained strong.
TasFoods said its board and management continued to review operations to adjust to the changing environment and conserve cash.
