- Keytone Dairy (KTD) has achieved a record in sales for the March quarter, which it classifies as the final quarter of the 2021 financial year
- The $3.4 million in sales led to the New Zealand dairy business reporting a 125-per-cent revenue increase to $50.7 million for FY21
- Keytone also recorded $1.5 million in earnings before interest, tax, depreciation and amortisation (EBITDA) compared to a loss of $778,000 in the prior year
- However, the company significantly increased operating expenditure to purchase more inventory and invest in working capital
- At the end of the March quarter, Keytone had $4.1 million in cash and $1.8 million in unused debt facilities
- Company shares have dropped 8.82 per cent and are trading at 15.5 cents
Keytone Dairy (KTD) achieved significant growth in sales over the March quarter which it classifies as the fourth and final quarter of the 2021 financial year.
The New Zealand-based dairy business made $3.4 million in sales which marks the highest sales achieved in any quarter. This led to Keytone recording a 125-per-cent revenue increase to $50.7 million for FY21 compared to FY20.
In terms of cash receipts, Keytone recorded an increase from $12.6 million in the December quarter to $13.7 million in the March quarter.
Furthermore, Keytone Dairy saw a surge in earnings before interest, tax, depreciation and amortisation (EBITDA) to $1.5 million compared to a loss of $778,000 in the prior year. The company plans to continue this growth momentum over the next 12 months.
“The fourth and final quarter of FY21 completed an extraordinary year of strong triple digit growth for the business. This growth has occurred notwithstanding the
magnitude of disruption caused by a global pandemic and the material disruptions to global logistics, pricing and the everyday work environment,” CEO Danny Rotman said.
Keytone saw an operating cash outflow of $3.06 million which marks a significant increase from the $90,000 used in the previous quarter.
The company says the rise was driven by several key factors such as investing in working capital and purchasing more inventory to counteract shipping delays, rising ingredient prices, and prepare for increased orders after the Coles contract.
“I am confident these will greatly benefit the business into FY22 as we continue to build on the solid foundations created and take advantage of new opportunities that present with added capabilities in the group,” Danny said, commenting on the higher expenditure.
Other strategic moves include securing a new storage warehouse in Melbourne to reduce third party logistic costs and improve gross margins in FY22.
At the end of the March quarter, Keytone had $4.1 million in cash and $1.8 million in unused debt facilities. However, the company is progressing discussions with banks and lenders to scale-up its facilities and support its growth plans.
Company shares have dropped 8.82 per cent and are trading at 15.5 cents at 11:28 am AEST.