- Consumer goods developer and manufacturer Jatcorp (JAT) reported a negative cash flow of $1.51 million for the March quarter
- The company credits this loss to the impact of the Chinese New Year holiday and interruption to its ANMA facility caused by the installation of new machines
- Pleasingly though, Jatcorp’s plant-based meat alternatives were successful in trials in Chinese restaurants and commercial sales are expected to begin in the June quarter
- In the quarter, Jatcorp burnt around $1.5 million in operating activities and used $378,000 in investing activities
- As of March 31, the company had just over $6.1 million in available funding, representing four quarters of use if spending levels remain the same
- Jatcorp has ended the day 7.41 per cent in the red with shares trading at 2.5 cents
Consumer goods developer and manufacturer Jatcorp (JAT) reported a negative cash flow of $1.51 million for the March quarter.
The company credits this loss to the impact of Chinese New Year holidays and interruption to its ANMA facility caused by the installation of new machines.
China operations
For the Chinese New Year, many logistics firms were closed for around two weeks which resulted in Jatcorp unable to deliver stock.
Pleasingly though, Jatcorp’s plant-based meat alternatives were successful in trials in Chinese restaurants and commercial sales are expected to begin in the June quarter.
Just after the quarter in mid-April, the Chinese Food and Drug Administration has approved Jatcorp’s first cosmetic product under the Poupin skincare brand.
The Poupin brand is being developed by Jatcorp’s Hong Kong-based joint venture company, JWR International.
The Poupin Silky Brighten Revitalising Serum can now be sold in China through local department stores and specialty cosmetic stores.
Jatcorp expects first sales will begin in May.
ANMA facility
At the ANMA facility, major construction works were carried out throughout March and April.
The power and gas supply was disconnected to ensure the safe installation and as a result production of Jatcorp’s Moroka, Ione Milk and Neurio products decreased.
The majority of the works have been completed and the facility has been operating at its increased capacity from mid-April.
Finances
In the quarter, Jatcorp burnt around $1.5 million with the majority going towards manufacturing and operating costs.
The company also invested $378,000 in property, plant and equipment.
As of March 31, the company had just over $6.1 million in available funding, representing four quarters of use if spending levels remain the same.
Jatcorp has ended the day 7.41 per cent in the red with shares trading at 2.5 cents in a $36.10 million market cap.