Why the Keytone Dairy (ASX:KTD) share price opened 23% higher today

The Keytone Dairy Corporation Ltd (ASX: KTD) share price is soaring today after the company’s annual revenue report was released.
The post Why the Keytone Dairy (ASX:KTD) share price opened 23% higher today appeared first on The Motley Fool Australia. –

growth in dairy ASX share price represented by smiling cow

The Keytone Dairy Corporation Ltd (ASX: KTD) share price is soaring today after the company released its annual revenue report for the 2021 financial year. Keytone Dairy shares opened 22.86% higher at 21.5 cents before considerably retracing. At the time of writing, the company’s shares are trading at 18.5 cents, up 5.71% for the day so far. 

Let’s take a closer look at the dairy manufacturer and exporter’s results.

Annual revenue results

The Keytone Dairy share price is on the move today after the company released its unaudited results for the year ending 31 March 2021. The results show significant growth in Keytone Dairy’s sales and business divisions.

Aside from the growth constraints caused by Australia and New Zealand’s bleakest period of the COVID-19 pandemic, the company says its brands have continued to record strong growth.

The company’s statutory total sales revenue was up by a whopping 125% compared to the previous period.

According to its statutory results, the year that’s been has seen Keytone Dairy rake in $50.7 million in sales revenue. This is an impressive gain when compared to the previous year’s $22.5 million revenue.

The company’s Australian Contract Manufacturing segment also delivered robust gains. Its statutory results show it brought in $35.2 million in sales revenue, a 109% gain on the sales revenue of the prior year.

Keytone’s New Zealand Dairy division earned $11.3 million in sales revenue over the year, an increase of 126% over the previous year.

Finally, the company reported that its brands – including Onmiblend, which was acquired by Keytone Dairy in August 2019 – had a combined statutory income of $4.2 million. That represents an impressive 545% revenue increase on the prior corresponding period.

Commentary from management

Keystone CEO Danny Rotman commented on the company’s revenue results. He said:

The record growth across the group over the last twelve months has been extraordinary, particularly given the magnitude of disruption caused by COVID to global logistics and workplace environments. The pandemic caused significant headwinds for further penetration of our own brands and our clients’ businesses. Notwithstanding these challenges, the sales growth of the business has outperformed. I am incredibly proud of the way our loyal and dedicated staff have come together to successfully navigate through this unprecedented year and the foundations that have been built as we move into FY22.

Keytone Dairy share price snapshot

Today’s news has resulted in a welcome boost for the Keytone Dairy share price, which has had a rough trot on the ASX lately.

Even with today’s gains, Keytone Dairy shares are down almost 23% year to date. The company’s shares are also down by around 70% over the last 12 months.

Keytone Dairy has a market capitalisation of around $47 million, with approximately 273 million shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Keytone Dairy (ASX:KTD) share price opened 23% higher today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!