COVID-19 hit the bottom line of many companies but Keytone Dairy (ASX:KTD) was not one of them.

The dairy manufacturer and exporter saw 125 per cent revenue growth across its last financial year (which for Keytone is April 1-March 31 being New Zealand headquartered), even with the impacts to global logistics and some sales channels such as daigou that hit many other dairy stocks.

In FY20 it made $22.5 million across the group on a statutory basis but in FY21 this was $50.7 million – 125 per cent higher.

Of this:

  • $35.2 million came from Australian contract manufacturing
  • $11.3 million came from New Zealand dairies
  • $4.2 million came from its Brands division

All of these were over 100 per cent higher than in FY20 and the latter of these was 545 per cent higher than FY20.

This is a consequence of the new products it has launched in the last 12 months including products bound for Australia, Malaysia and China.

The Chinese market is proving difficult for many Australian companies with trade companies but with Sino-Kiwi relations not as cold as Australia, New Zealand appears to be business as usual.


Extraordinary success

Keytone CEO Danny Rotman labelled this result “extraordinary” given the disruption COVID-19 caused the market.

“The pandemic caused significant headwinds for further penetration of our own brands and our clients’ businesses. Notwithstanding these challenges, the sales growth of the business has outperformed,” he said.

“I am incredibly proud of the way our loyal and dedicated staff have come together to successfully navigate through this unprecedented year and the foundations that have been built as we move into FY 22.”

While shares took a hit during COVID-19 and have lagged for many months, they rose by 20 per cent this morning.

Keytone Dairy (ASX:KTD) share price chart