Wattle Health Australia Limited (ASX: WHA) is into the development, manufacturing, and marketing of dairy, nutritional health, and wellness food products. The company focuses on infant formula and dried dairy products.
The company, today on 25 March 2019, has reported that Corio Bay Dairy Group, the JV executed between WHA, Niche Dairy and Organic Dairy Farmers of Australia (ODFA), have inked a variation to the Supply Agreement with Organic Dairy Farmers of Australia to provide for the maiden commercial quantity of organic A2 fresh milk to be processed into organic A2 nutritional dairy powder.
CBDG is presently well-advanced in building Australia’s first dedicated organic nutritional spray dryer. Once finished, this installation will process both current organic fresh milk from ODFA and the newly obtained organic A2 fresh milk supply.
CBDG has finalised building contracts for construction of the nutritional spray dryer, and the earthworks are underway on the site, next to Organic Dairy Farmers of Australia’s manufacturing facility in North Geelong, Victoria.
Exclusive supply contractual arrangements have been struck between CBDG and WHA (45% equity holder in CBDG), giving WHA ‘first rights’ on all products produced by CBDG, which will be a major ingredient of WHA’s nutritional dairy range. With CBDG’s first commercial supply of organic A2 fresh milk in Australia, the company will become the first nutritional dairy company offering nutritional dairy products in an Australian organic A2 range.
In the existing situation, no other competitor has brought to market an organic A2 nutritional dairy products except CBDG. This is a unique and valuable proposition for the company and is expected to considerably increase the brand awareness and probable sales, both locally and globally for its offerings.
Mr. Lazarus Karasavvidis, the Executive Chairman of the company said that CBDG’s securing organic A2 fresh milk from the respected partner, Organic Dairy Farmers of Australia, is important and further reinforces company’s drive to be the best organic nutritional dairy business in the region. To be first in the market with a highly valued organic A2 product is an evidence of the quality and value all JV parties bring to CBDG. This allows the company to distinguish itself from other competitors.
On the price-performance front, the stock has posted the YTD return of -10.99%. The company has posted returns of -19.80% over the past six months. The stock of the company closed the day’s trading at a price of $0.83, up by 2.47% during the day’s trade with a market capitalisation of ~$157.55 million. The stock opened the day at $0.860, reached the intraday high of $0.865, and touched an intraday low of $ 0.825, with a daily volume of ~ 766,192. It had a 52-week high price of $2.657 and a 52-week low price of $0.800, with an average volume of 230,517 approximately.
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