- Jatenergy (JAT) has continued building momentum in sales and operations in the wake of the coronavirus, now called Covid-19
- The consumer goods exporter reported $2.8 million in sales from the 1st to the 18th of February
- This is over double the amount sold in February last year
- As a result of Covid-19, the Chinese New Year holidays were extended into mid-February
- But this hasn’t affected the grand opening of Jat’s maternity and infant store in Shanghai
- The store remains on schedule for opening next month
- In terms of new equipment at its ANMA facility, installation also remains on schedule and will be ready by the end of the month
- Additionally, Jat has secured first orders from Beta A2 Australian Manufacturing and Ultinature
- Jatenergy is up 2.08 per cent and shares are trading for 4.9 cents each
Jatenergy (JAT) has continued building momentum in sales and operations despite the coronavirus, now called Covid-19.
Jat is a trusted Australian consumer goods exporter, with a particular focus on dairy and infant formula products.
Neurio Sales
On February 3 2020, Jat announced a spike in sales of its Neurio lactoferrin brands and credited the increase to the emergence of the Covid-19 virus.
While some businesses have suffered economically from the outbreak, Jat, if anything, seems to have thrived.
As of February 18, orders for the month have reached $2.8 million, which is more than double the $1,099,917 reported in February 2019. And there are still 11 days not yet accounted for.
The Neurio range is the Neurio Formulated Milk Powder with Lactoferrin and Sialic Acid which have proven benefits for the immune and digestive systems.
Shanghai Retail Store
As a result of Covid-19, the Chinese New Year holidays were extended into mid-February.
Despite this extension, Jat expects there will be no delays in the March opening of its Shanghai Maternity and Infant Boutique.
Once opened, this retail store will be the only Australian dairy company retail store in Shanghai. It will be fully stocked with a variety of Jat’s products, including the Neurio lactoferrin range.
It will also sell Golden Koala, Oz Mia and Hopefern and other JAT products under development.
Currently, there is a significant amount of stock on standby in Shanghai that is ready for retail demand.
ANMA Contracts
In October 2019, the company announced its manufacturing subsidiary, Australian Natural Milk Association (ANMA) ordered new machinery to be installed by February 2020. This was for its facility to meet the highest standards of milk powder and multi-line packing in Australia.
The construction and installation project remains on schedule and is expected to be finalised by the end of this month.
Beta A2 Australian Manufacturing Update
On November 20, Jat announced that ANMA entered into a five-year manufacturing and supply agreement with Beta.
The agreement outlined a total amount of $6.7 million in the first year, which would start with an initial order of $1.8 million. Following this, orders of over $4.9 million are scheduled for the eight months after June 2020.
“We were delighted that Beta chose us to manufacture their premium A2 protein product,” Jat CEO Wilton Yao said.
ANMA has now received the $1.8 million from Beta, along with the initial $250,000 as discussed in the deal.
Ultinature Nutritional Australia
ANMA has recently entered a two-year manufacturing and supply agreement with Ultinature. Ultinature has placed its first order paired with the required 30 per cent deposit.
The agreement entails Ultinature placing orders on ANMA to make four Ultinature products, as well as any new products it chooses to develop.
The agreement is for a two-year period however, the parties expect the agreement may be extended.
The specified quantity of $6 million isn’t binding however Ultinature won’t face legal consequences if it doesn’t place $6 million worth of orders.
“The relationship with Ultinature is expected to extend well beyond the current two-year agreement,” Wilton said confidently.
Jatenergy is up 2.08 per cent and shares are trading for 4.9 cents each at 11:51 am AEDT.