Got Milk: The dairy stock that surged +60pc in July
Food & Agriculture
Food & Agriculture
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Most ASX dairy stocks had a muted July, but one stock bucked the trend and rallied 62 per cent.
Three weeks ago the company told shareholders it witnessed positive trading in May and June in spite of COVID-19 and the summer’s bushfires.
Net sales are up 3.5 per cent year on year on a 12-month basis and earnings are $5.3m better then the year before.
Maggie Beer Holdings it probably better known for its cheeses, wines and desserts, but the stock makes the dairy list through its two organic dairy brands – Saint David Dairy and Paris Creek Farms.
The latter of these has now received Chinese Organic certification and the company is looking to export its products to China.
The other big news for the company last month was fund manager Michael Wilson backing the company by accumulating a 7.6 per cent stake.
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Four other dairy stocks recorded gains, albeit only single digit movements. Taking out silver is infant formula supplement maker Bioxyne (ASX:BXN).
Despite reporting in April it was having difficulty shifting from face-to-face meetings, it managed the close the quarter and year with slightly higher sales compared to the prior corresponding period.
Goat infant formula play Nuchev (ASX:NUC) also edged up on higher sales for the June quarter and 2020 financial year.
Lab testing services provider HRL Holdings (ASX:HRL), whose clientele includes dairy farms, gained another 5 per cent.
Finally Beston (ASX:BFC) inched up just 1 per cent in July after a much bigger 54 per cent move in June.
Beston received Foreign Investment Review Board (FIRB) approval to sell its Mt Gambier dairy farm to Aurora Dairies last week.
The company will use the proceeds to extinguish its debt and increase production of lactoferrin — a critical by-product in making mozzarella cheese.