- Last month, Jatenergy (JAT) achieved $8.3 million in revenue, making it the highest monthly total the company has received
- The revenue was surged by increased orders, particularly the Neurio lactoferrin brands
- Lately, the company has achieved a number of sales milestones following the emergence of Covid-19
- As a result of these trends, Jat expects revenue for the June 2020 half-year to be between $45 and $50 million – up from $36 million in the prior corresponding period
- To meet higher demand, the ANMA production facility will perform double shifts
- Additionally, Jat’s joint venture with Oppenheimer has attracted the first batch of orders of plant-based meat
- Jatenergy is up 5.26 per cent and shares are trading for 4 cents each
In February 2020, Jatenergy (JAT) achieved $8.3 million in revenue, making it the highest monthly total the company has received.
The revenue was surged by a material increase in its product orders, particularly the Neurio lactoferrin brands.
While a significant milestone, Jat isn’t all too surprised as last month it reported a double in Neurio sales compared to February 2019. The recent spike in sales has been driven by the emergence of Covid-19 (coronavirus).
The company expects revenue will continue to increase, not only because of the coronavirus, but due to its subsidiary achieving nearly a threefold jump in sales.
Jat’s subsidiary, Green Forest, had a slump in sales for the half-year ended December 31 2019, but in February sales climbed to $3.2 million from just $1.1 million in January. It will also be coming out with new products to be released shortly.
As a result of current circumstances, the directors of JAT expect the revenue for the June 2020 half-year to be between $45 and $50 million. This is a substantial increase from the $36 million of revenue achieved in the previous corresponding period.
In the June 2019 half-year, Jat’s products were produced by third party manufacturers, however since then, a large portion of the products sold will be made in-house by the Australian Natural Milk Association (ANMA). Profitability will therefore be higher than previous periods.
The ANMA manufacturing facility has confirmed orders of over 660,000 various lactoferrin and milk powder products from this month through to the end of June 2020.
As a result of the influx of orders, the ANMA facility will begin operating two eight-hour shifts in April.
Concurrently, ANMA is in the process of planning for additional machinery and expects they will be ordered before the end of the month and installed by mid-2020.
In November 2019, Jat established a joint venture with Australian-based food producer, Oppenheimer, to develop plant-based meat products.
As part of the agreement, Oppenheimer has undertaken research and development (R&D) and product development. While Jat has focused on sourcing buyers in China.
At this stage, around 500 kilograms of product has been ordered and is currently being manufactured in Australia.
The products are expected to be shipped to Chinese restaurants by the end of March or early April.
Jatenergy is up 5.26 per cent and shares are trading for 4 cents each at 12:25 pm AEDT.