Whey to go as key products feed Beston growth
Adelaide-based food company Beston is setting a cracking pace with lobster sales and cheese production aiding its goal of becoming a leading global supplier, its half-year results report.
The food group saw a 197 per cent increase in its lobster operation and its cheese and whey powder enterprises exceeded production.
Beston (BFC) reported to the ASX on Monday morning an underlying net profit after tax of $1.7 million, up by $400,000 since its November AGM.
Group revenue for the half year was $7.6 million.
“We are a company in growth mode,” chairman Roger Sexton said today.
“We are investing in growth and we are acquiring for growth on our journey to become a global food company.”
Other key performances included:
- Tuna processing up 13 per cent
- Meat processing capacity 25 per cent
- New allergen-free meat meals
- Orders for salt and condensed milk “replacer” products in Asia.
The half-year results reflect four months of operations to December 31 with Beston listing on the Australian stock exchange on August 28.
The first two-month period of the half-year results relate to Beston’s pre-offer capital of $27.5 million and limited investments.
Beston, which has B.-d. Farm Paris Creek among its stable of dairies, and Ferguson Australia and Mori Seafood productions in its food and beverage portfolio, raised an additional $100 million through its initial public offering which was put into acquiring more assets.
A dividend won’t be paid this period.
Sexton said BFC was “well on its way” to becoming one of the few food companies in the world that has its own closed-loop supply chain.
He said the chain provided consumers in expanding global markets with quality foods and products sourced from BCF-own raw materials, manufactured mostly in their factories and sold through their own “people on the ground’.
CEO Sean Ebert said the company was in a strong position with high-quality assets on the books, no debt and cash reserves of $34.45m.
Ebert said the focus for the second half was to continue increasing revenue and margin gains in the existing businesses.
He said this would be in conjunction with expanding the company’s revenue base with other initiatives.
“This included new products and new alliances and distribution agreements, as well as the generation of new revenue streams based around the [food traceability] food safety technology,” he said.
