East coast expansion on track as Catalano Seafoods continues to deliver
Food & Agriculture
Food & Agriculture
After a headline IPO back in March, Catalano Seafoods is delivering on its strategic promises and driving key targeted supplier store sales by 20%.
Following a busy first three months on the ASX, Catalano Seafoods (ASX:CSF) heads into the new financial year with a strong balance sheet.
With a pipeline of new processing contracts and the company’s East Coast expansion on track with the strategic plan outlined in its prospectus – as well as the planned launch of value brand Fresca on track for September – Catalano has already begun to build out its national expansion as a public company.
CSF is adding a further 1500 sqm of production and storage space to the existing Catalano facility in Bassendean ahead of the lift in its contract processing and retail revenue channels.
Contract processing growth throughout the quarter is in line with forecasts. By end June quarter, 250 tonne of new season toothfish had begun processing and will run through until March 2023, – the contract to deliver a further $1.1m in revenue.
A second contract processing agreement has been signed with Wild Barra Fisheries for 200 tonne of barramundi with a projected revenue of $700,000. With more in the pipeline, contract ongoing processing agreements with MG Kailis, Sea Harvest, KB Foods and Abalone continue unchanged.
The Company listed on the ASX back in March 2022 ($5m at $0.20 per share) with the goal of first expanding the national supply footprint and with the additional freezer space, Catalano can now fast track the development of the national trade distribution strategy.
In April CSF launched its Seafood Management System (SMS) at Waterford Supa IGA in Western Australia, the first of four further SMS stores due to be completed by the end of Q2 FY23.
CSF has ordered a new plant and equipment to drive the required higher volumes of productivity and lift capability, including:
Kicking off listed-life after half a century as one of WA’s most iconic family businesses, Catalano has quickly attracted the attention and support of industry and government.
In addition to a $700,000 grant from the Federal Department of Primary Industries and Regional Development (DPIRD) Catalano has agreed to a strategic alliance with Metcash Western Australia for the supply and promotion of Catalano products through the Metcash Distribution Centre and through branding in the mass market weekly IGA catalogues.
Catalano forecasts the alliance could add a further $1.5m in annual sales revenue to the existing relationship.
Retaining the Catalano vision, heritage and culture, with growth now driven by public investment and led by experienced board and management, three major independent Victorian retailers (Ryan’s, Michael’s and Reddrop) have sought ongoing distribution agreements offering east coast exposure across an additional 35 locations.
CEO and chairman Nick (Nicolino) Catalano says that since the range was introduced, trade with these retailers is showing week on week growth.
“Four out of five Australians eat seafood every week, which is some 30kg per person, every year. The retail value alone of seafood consumption nationally is more than $1 billion – and the global reputation of West Australian seafood is undeniable,” Catalano told Stockhead.
“We’ve been rolling out our Seafood Management System in supermarkets – a new concept of taking seafood to a retail level, with partners like IGA bringing over 2000 supermarket products to customers across Australia.
“The opportunity is very, very significant.”
This article was developed in collaboration with Catalano Seafoods, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.