The Keytone Dairy Corporation (ASX: KTD) share price has broken its downward trend to lift 7% in early-afternoon trade. Here’s why.
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The Keytone Dairy Corporation Ltd (ASX: KTD) share price has broken its downward trend to lift in early-afternoon trade.
This follows the dairy manufacturer’s update on sales and purchase orders received from Walmart (China) Investment Co.
At the time of writing, the Keytone share price is swapping hands for 13.5 cents a pop, up 3.8%.
Investors are buying up positions in Keytone shares after the company recorded strong sales for 2021.
In its release, Keytone advised sales and forward orders have topped NZ$3.3 million from Walmart China. This represents a three-fold increase for the first five months of 2021 when compared to this time last year.
The company attributed the robust performance to its whole and skim milk powder for Sam’s Club China. The popular product has been a hit with Chinese consumers due to the company’s strategic partnerships and accredited facilities.
In addition, the company has booked NZ$1.4 million of further orders to be delivered in the third quarter of 2021.
Keytone CEO, Danny Rotman touched on the company’s progress, saying:
Our international track record, strategic partnerships and growth in powdered dairy continues, underpinned by our fully licensed and accredited facilities in New Zealand. The strong growth is testament to the efficiency and quality of our facilities and team in New Zealand.
We are continually seeking new business opportunities with our existing clients, forging new relationships with others and will update the market with new material contract wins and forward orders as they come to hand.
About the Keytone share price
Today’s gain will be a relief to shareholders, as the Keytone share price has halved in value over the past 12 months. Shares in the company have also fared poorly in year-to-date performance, down more than 40%.
Based on valuation grounds, Keytone presides a market capitalisation of roughly $38 million, with approximately 273 million shares on issue.
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