Corporate: Clover makes record $10.1m profit; seeks to capitalise on EU regulations
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Infant formula stock Clover Corporation (ASX:CLV) has booked a $10.1m profit after tax — 33 per cent more than last year and a company record. Of course shareholders were happy.
Shares gained 15 per cent this morning and it have nearly doubled since early February.
“The company continues to focus on doing the right things to win new customers and providing excellent service to support and retain the existing customer base,” CEO Peter Davey said.
Clover’s core product is encapsulated tuna oil. Clover’s oil uses docosahexaenoic acid (DHA), an omega-3 fatty acid recommended for brain health, along with boosting the health of the heart and eye.
Encapsulation allows food companies to put more kilograms of protein into their products. One market in which it will be critical is Europe, which requires infant formulas to have a minimum quantity of DHA. Clover expects to grow its sales in Europe.
Also among its future plans is a spray drying facility in New Zealand and developing new products targeting sports nutrition and seniors’ health.
After 25 years as a director and 16 years as chairman, Rick Crabb will retire from uranium explorer Paladin Energy (ASX:PDN) at the end of this year. He told shareholders this morning that good governance dictated it was time for a new chair.
Jiajaifu Agriculture (ASX:JJF) has told the ASX that it was too busy searching for new directors and responding to ASX queries to announce in May that it was making an $8.9m investment in a breeding greenhouse firm. It didn’t tell shareholders about the deal until August. The stock was initially suspended in May after board resignations left it short of the ASX threshold. While this was resolved, it was halted again in July due to allegations it reached its minimum IPO spread by “artificial means”. The ASX is continuing its investigations.