Australia-China trade specialist and consumer good manufacturer Jatenergy (ASX: JAT) has reported a significant uplift in their dairy product brands with the company correlating the rise with the coronavirus breakout.
Whilst the Company did not go into any details regarding the correlation, their Neurio lactoferrin brand of milk products have seen a spike in orders which has led Jatenergy’s orders for the month to reach $2.8 million, with a further 11 days remaining in the month.
In comparison, the corresponding month in 2019 only saw $1.1m of orders placed, however Jatenergy’s range of dairy products and manufacturing capabilities have grown expansively over the past 12 months.
The orders continue to strengthen Jatenergy’s China-focused business with the company expecting to open a retail store in Shanghai next month which will be a Boutique shop that will exclusively stock Australian dairy products, including Jatenergy’s Neurio lactoferrin range.
The rise in orders has been facilitated by Jatenergy’s 70% acquisition of Australian Natural Milk Association (ANMA) in August for $14 million with their Melbourne manufacturing facility providing Jatenergy a key asset to leverage other strategic partnerships.
This led to new machinery installed at the facility earlier in the month which has enabled greater production range of their container and sachet products, as well as leading to a 5-year manufacturing agreement with Beta worth $6.7 million in orders for just the first year alone.
Jatenergy has since also used the ANMA facility to enter a 2-year manufacturing agreement with Ultinature forecasted to deliver ANMA with $6m of revenue.
“We were delighted that Beta chose us to manufacture their premium A2 protein product,” said Jatenergy CEO, Wilton Yao.
“The relationship with Ultinature is expected to extend well beyond the current two-year agreement. We expect to continue to add to our manufacturing order book once our new equipment is installed by the end of the current month.”
Jatenergy was previously listed on the ASX as an energy company before pivoting to their current China-Australia consumer goods business model in 2017. It is assumed the Company will re-brand its name at some point.