Food: The ASX's food stocks are getting fatter on positive financials

Food stocks enjoyed a positive morning on the ASX on the final day of reporting season, led by Ocean Grown Abalone (ASX:OGA).

The abalone producer saw its shares jump 33 per cent on Friday morning to 16c thanks to increases in profit, revenue and biomass harvest.

The company reported full-year revenue of $4.97m on the back of a 53 per cent increase in sales, a strong improvement on 2018, as well as a $2.2m after-tax profit, a $5m turnaround and the company’s first operating profit.

It harvested 55 tonnes of abalone in the financial year, up 44 per cent on 2018, and that increased the value of the biomass by 68 per cent to $9.9m.

Brad Adams, the company’s managing director, said Ocean Grown was now ready for the next phase of growth.

“OGA now has all the elements in place for future growth and profit: a new processing facility to handle greater harvest volumes, a new development in the pipeline at Esperance and a substantial increase in abalone biomass at our Flinders Bay Ranch,” he said.

He added the company’s development on its processing and production facilities would facilitate further increases.

“Subject to satisfactory results in the feasibility study, achieving all the necessary approvals and with shareholders’ support, the Esperance development is expected to be one of the most significant onshore abalone developments in Australia, in an international marketplace, placing Australian food products in high regard,” he said.

In other ASX food news today:

Chinese daigou retailer AuMake International (ASX:AU8) climbs on growth. Shares rose 4 per cent to 13c on revenue that more than doubled to $44m, as well as a narrowed full-year loss of $7.7m. “We have made very strong progress towards our goal of becoming a highly profitable, high growth, Australian multi-channel brand building platform for the Chinese market,” the company told investors.

Vitalharvest (ASX:VTH) jumps 7 per cent to 86c. The company, which owns berry and citrus farms in Australia, reported 11-month results since its IPO and restructure, and while there was a loss, investors were pleased at news the upcoming citrus harvest could be favourable, with strong volumes and good quality expected. “There is future growth projected in the citrus properties as ~20 per cent of the trees are yet to reach full maturity,” it said.

Food kit provider Marley Spoon (ASX:MMM) reveals half-year results. Revenue rose 55 per cent to $101m, although the full-year loss blew out by 12 per cent to $36m. The company said it expected to achieve a global contribution margin in the mid to high 20s for the 2019 calendar year, and to reach profitability on an operating EBITDA basis by 2020.