Food: Formula additives stock Clover boosts profit by 40pc
Food & Agriculture
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.