Clover Corporation Limited (ASX: CLV) has bounced back in a big way, delivering a 38% increase in revenue to $37.6 million for the first half of FY25. With net profit after tax (NPAT) of $2.4 million, a major turnaround from last year’s $0.6 million loss, the company is proving its strategy is paying off.
Financial Performance at a Glance
- Revenue: $37.6M, up 38% from 1H FY24
- EBITDA: $4.3M (1H FY24: $0.3M)
- NPAT: $2.4M (1H FY24: -$0.6M)
- Gross margin improvement driven by stronger customer mix and manufacturing efficiencies
- Cash reserves of $15.4M as of January 31, 2025
- Fully franked interim dividend of 0.75 cents per share
Strategic Growth & Market Expansion
CEO Peter Davey highlighted that Clover’s product and market diversification strategy has been a game-changer. Despite a subdued global infant formula market, the company has seen a strong recovery in Europe and ANZ, along with growth in online sales.
Additionally, Clover’s expansion into DHA applications across pet food, nutraceuticals, sports nutrition, and adult nutrition is opening new revenue streams. The company is also investing in fish oil sourcing, ensuring a steady supply of raw materials in a constrained market.
Operational Highlights
- Melody Dairies (NZ): Improved plant utilisation and efficiency, with growing production volumes reducing costs.
- Ecuador Facility: Crude fish oil extraction from tuna heads is ramping up, with shipments starting in November 2024 and delivering high yield and quality.
- New Products: Strong uptake for powdered High Omega 3 in nutraceuticals and pet food. Major US brands are incorporating Clover’s Gelphorm DHA into UHT products, while CholineXcel is gaining traction in the market.
Dividend Declared
Clover’s strong cash position has enabled the Board to declare a fully franked interim dividend of 0.75 cents per share, with key dates as follows:
- Ex-dividend Date: 9 April 2025
- Record Date: 10 April 2025
- Payment Date: 24 April 2025
Outlook
With a strengthened balance sheet, expanding distribution network, and diversified growth strategy, Clover is well-positioned for long-term success. The company’s focus on innovation, efficiency, and strategic partnerships is setting the stage for continued profitability in the second half of FY25 and beyond.
