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Keytone Dairy (ASX:KTD) milks $5.3M orders in just 24 hours

Consumer
ASX:KTD
08 April 2020 12:06 (AEST)
Keytone Dairy (ASX:KTD) - CEO, Danny Rotman

Sourced: Keytone Dairy

Keytone Dairy (KTD) has received follow-on orders from Walmart China and Nouriz for a combined total of $1,688,000.

The Walmart China order for Keytone’s whole and skim milk powders was placed under its Sam’s Club brand. Sam’s Club operates 24 megastores across China but hopes to expand to 40 stores by the end of the year.

Nouriz places its orders under its own brand to offer Chinese consumers high-quality New Zealand-produced milk powders.

“As Walmart and Nouriz scale the existing product offering across their retail stores in China as well as introduce new product SKUs, Keytone will continue to work closely with each client to grow volumes and product capability,” CEO Danny Rotman said.

Walmart China’s order totalled more than $822,000 and is roughly 2.4 times larger than its recent order placed in February 2020.

Similarly, Nouriz’s order came to $866,000 and is seven times larger than the order it placed just four weeks ago.

While Keytone is incredibly pleased with these orders, the dairy manufacturer isn’t all too surprised by the surging demand for its products.

Since the COVID-19 outbreak, the company has experienced an uplifting global demand for its nutritional milk and dairy products.

In fact, in the last 24 hours Keytone has rallied orders of roughly $5.3 million. Just yesterday, the company secured $3.6 million in opening orders from Iovate Health Sciences.

This represents a staggering 210 per cent increase since the audited FY19 financial results.

“These results continue to speak to the credentials, scale and capabilities of the company and we will continue to work closely with all our strategic clients and distributors,” Danny added.

Keytone stated the orders will be manufactured in the next few months and will be exported to China in June or July 2020.

Keytone Dairy is up 3.49 per cent and shares are trading for 44.5 cents each at 12:04 pm AEST.

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