Despite a decline in sales among larger Australian dairy product manufacturers, the smaller guys are still kicking strong as evidenced by Keytone Dairy (ASX: KTD) tripling its exports to China since the start of 2021.
Orders have been particularly strong from Walmart China and Sam’s Club China with bulk buying of particular attraction to Chinese consumers seeking value. This has resulted in Keytone Dairy sales totalling NZD $3.3m for the five months to May 2021 compared to the $1.2m reported over the same period last year.
“Our international track record, strategic partnerships and growth in powdered dairy continues, underpinned by our fully licensed and accredited facilities in New Zealand,” said Keytone Dairy CEO, Danny Rotman.
“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.”
Whole milk and skim milk powders continue to be the products of choice within Chinese markets where the products are most commonly seen in domestic markets under the KeyDairy brand of powders and immunity boosters.
In addition to the NZD $3.3m of sales and forward orders up to May, Keytone Dairy has received orders for an additional $1.4m from Sam’s Club China to be delivered by September 2021.
As a New Zealand based company, Keytone Dairy’s FY21 results for the 12 months ending 31 March 2021 were highlighted by a 125% increase in revenue to NZD $50.7 million (unaudited) with a full report to be released in the coming days.
The strong sales from China follow on from local success where Keytone Dairy was awarded a tender from supermarket giant Coles for manufacturing a private label valued at AUD $5.2m per annum.