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Jatenergy (ASX:JAT) keeps revenue up over March, anticipates even bigger quarter

Consumer Discretionary
ASX:JAT      MCAP $26.64M
21 April 2020 13:00 (AEST)

Jatenergy (JAT) continued to bring in high revenue over March, with the final monthly figures coming in just $200,000 shy of its February revenue record.

On March 12, the consumer goods manufacturer announced it had made $8.3 million in revenue over February. In today’s coronavirus and manufacturing update, JAT revealed it made $8.1 million in March revenue.

But Jatenergy directors expect the coming quarter will bring about even higher revenue numbers. It comes as the company anticipates increased dairy product orders, new product launches from its Green Forest subsidiary, and the ramp-up of its AMNA manufacturing facility.

Jatenergy also expects its June half-year revenue will reach $50 million, compared to last year’s $36 million.

ANMA manufacturing f acility

To meet increasing demand, JAT’s ANMA manufacturing facility installed and commissioned new manufacturing equipment in October. In addition, ANMA has added more staff to the team, including an operations manager, systems engineer and nutritional technologist.

Due to the number of enquires, the company will be looking to purchase two more machines to meet the demand.

But as more manufacturing enquiries come in, JAT says it needs to ramp up its facilities and acquire two more machines. Jatenergy says the new equipment will serve as “a high-quality probiotics multi-packing machine and a resealable plastic milk powder bag machine.”

JAT believes roughly $1 million is required to get the machines up and running.

Shanghai retail store

While JAT aimed to open its Shanghai maternity and infant store in March, it’s had to push back the date because of COVID-19 restrictions.

“The circumstances are beyond JAT’s control and a further update will be provided when the date of opening is finalised,” the company said.

JAT remains in the grey today, selling shares for 5.3 cents apiece at 10:56 am AEST.

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