Food: Formula additives stock Clover boosts profit by 40pc

Dairy formula additives company Clover Corp (ASX:CLV) has posted another set of improved financial results, with profit for the 2019 half-year up 40 per cent.

Clover’s profit hit $4.5 million and revenue rose to $34.3 million, a 10 per cent boost on the prior half-year.

The company is also paying a dividend: 62.5 cents per share, to be paid to investors by the end of April.

Peter Davey, Clover CEO, said demand for its products, which include nutritional oils, such as tuna, fish, algal and fungal oils to be added to infant formula, foods and beverages, was continuing to grow.

“It’s pleasing to see the results of years of business development coming to fruition with new customers and applications for our products translating into revenue and profits,” he said.

Clover made a $7.6 million profit in the 2018 financial year, largely thanks to China’s enthusiasm for infant formula. It says that market has remained strong, despite a slow down in licensing by Chinese authorities, and it is well-placed to take advantage of new opportunities in Europe.

Shares rose 14 per cent to as high as $1.93.

Clover Corp (ASX:CLV) shares in the past year.

In other ASX food news today

Clean Seas Seafood (ASX:CSS) is selling a heap of fish. The company sold 489 tonnes worth of its signature Yellowtail Kingfish in January and February, which was a 40 per cent rise on the same period in FY18. All four of its markets — Australia, Europe, North America and Asia — experienced growth year-on-year. Shares rose 9 per cent.

Strong shareholder support continues for Food Revolution Group (ASX:FOD). Following on from the bridge funding announced by Dr Norman Li earlier this month, Food Revolution directors and institutions took part in an off-market block trade of 35 million shares.

$1.2 billion Chinese company buys Jatenergy (ASX:JAT) products. Following a meeting with Orient International, Jatenergy has received a purchase order from one of its subsidiaries, Shanghai Dragon, for shipping containers of goats milk soup, food and wine and Jatenergy’s branded Golden Koala formula. Shares rose 11pc.

Blackmores (ASX:BKL) still looking for a new CEO. After Richard Henfrey’s resignation, the company has appointed Marcus Blackmore, son of the company’s founder Maurice Blackmore, as interim CEO as it looks for a new one.