Wattle Health Reveals Key Insights At Credit Suisse’ Dairy Day

Wattle Health Presented Credit Suisse Dairy Day Presentation

Wattle Health Australia Limited (ASX: WHA) aims to promote health and wellness at all stages by providing organic and sustainable products. It uses natural ingredients for its products that are derived from Australia’s pure water, clean air and organically fertile soils and aspires to become a globally recognised player for its superior quality. It also works carefully in the packaging of its products to ensure the retention of nutrients. The company is also involved in CSR activities and supports farmers who embrace soil management practices in order to maintain soil biodiversity to produce naturally superior products.

On 3rd April 2019, the company presented its Credit Suisse Dairy Day presentation. The company claimed to have the world’s purest source of nutritionally superior dairy products, producing certified high quality organic Australian products. It also discussed how it is building Australia’s leading organic demand chain. The company established the foundation in the financial year 2018 by investing in CNCA certified Blend and Pack and Corio Bay Dairy Group joint venture with Organic Dairy Farmers of Australia (ODFA).

In FY19 the company is focusing on designing a better consumer experience which includes the establishment of the premium organic brand – Uganic which is considered to be the global benchmark of nutritionally superior, grass-fed organic purity. It also secured the supply of organic A2 fresh milk. The agreement to purchase 51% of Blend and Pack was also the part of the consumer experience.  In the first quarter of FY20, the company will focus on launching Suite of organic products.

On the global demand front, the company stated that demand for organic prodhas almost doubled since 2012 with dairy being the largest organic category in packaged foods. The organic dairy sector is predicted to be the fastest growth category from 2016 to 2021. Dairy sales in China is predicted to increase by US$1.8 billion by 2021, mainly driven by infant formula.

The joint venture between Corio Bay Dairy Group (CBDG) and OFDA has helped the company in many ways. CBDG offers Australia’s first dedicated nutritional organic milk spray dryer which enables full utilisation of ODFA outputs. As far as OFDA is concerned, it is Australia’s largest producer of certified organic milk which accounts for approximately 75% of Australia’s organic milk production. It also helps the farmers to get certified organic through the 3 -year journey.

As the company also considers the environmental factors, it is working on providing the long-term sustainability by relying on Organic, grass-fed milk production which also helps to increase productivity in the long run. Farmers and consumers are also ensured with better health outcomes.

On 20th March 2019, Wattle Health announces supply agreement with ISDC for China.

On 7th March 2019, Dr. Tony Mckenna was appointed as the new CEO of the company.

The company’s competitors like Bubs Australia Limited (ASX: BUB) and The A2 Milk Company Ltd (ASX:A2M) also presented their Credit Suisse Dairy Day presentation and are up by 2.55% and 0.43% respectively as of 3rd April 2019.

The stock of Wattle Health was up by 4.6% (highest gain of its competitors) and closed at A$0.79 as of 3rd April 2019 as compared to the previous closing of A$0.755. It is down by 31% in the last six months whereas the YTD return stands at negative 17%.


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