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Highlights
- Food and beverage occupy a significant part of the Australian economy
- The food industry is a great contributor to Australian finances and employment
- ERG, CLB, DBF, and HVM are three food stocks from the ASX which have provided more than 15% return on a YTD basis
The food and beverage sector makes a great contribution to both finances and employment in Australia, as well as covers a significant part of the national economy. The dynamic nature of the industry is highly driven by consumer demand seeking diversity and value. The industry provides a varied range of products such as grains, meat, dairy, horticulture, beverages, etc.
In this article, we will discuss four stocks from the ASX related to the food industry which have offered over 10% YTD returns.
Do read: Australia consumer confidence plunges to lowest level since Sep 2020
Eneco Refresh Limited (ASX: ERG)
Eneco Refresh is the only bottled water company listed on the Australian Securities Exchange (ASX). The company’s primary business activity includes producing and distributing bottled water and accessories. It also deals in the distribution of filtration systems and water purifiers.
In the half-year ended 31 December 2021, the company performed well despite the pandemic. Its sales for Total Refresh Waters increased by 11% compared to the previous corresponding period (pcp). It managed a 3% revenue growth during the same period.
Shares of ERG have been performing well on a year-to-date (YTD) basis, with a growth of nearly 32%.
The Food Revolution Group Limited (ASX: FOD)
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FOD is a food processing company based in Australia. The company manufactures various high-quality juices, fibers, wellness beverages and supplements for domestic and global customers.
In January, the company launched its new propriety, a 100% plant-based smoothie using fava bean protein. In the half-year ended 31 Dec 2021, the company’s gross revenue decreased slightly by 2%. However, the company has made good progress in its business. It has reported a more profitable sales mix and a more robust gross margin in H1 FY2022.
FOD has provided a total YTD return of 13.6% to its investors.
Endeavour Group Limited (ASX: EDV)
Endeavour Group is the leading hospitality and liquor business in Australia. The company aims to create a more sociable future together. It operates its business across Dan Murphy’s and BWS stores and holds the nation’s most extensive portfolio of licensed hospitality venues.
In the half-year ended 31 Dec 2021, the company reported a 3% rise in EBIT (Earnings before interest and taxes). Similarly, its profit after tax increased by nearly 16%. The company maintained a 72% interim dividend payout ratio during the same period.
Endeavour Group has provided nearly a 13.2% return to its investors on a YTD basis. It has also performed well in the last 52 weeks, with a return of almost 28.1%.
Happy Valley Nutrition Limited (ASX: HVM)
Happy Valley produces premium milk products from New Zealand milk. The company aims to emerge as a trusted B2B supplier of nutritional powders and fully formulated products derived from speciality milk and ingredients (including non-bovine).
In the half-year ended 31 Dec 2021, the company reported a loss that is 6% lower than the previous corresponding period (pcp). In September 2021, the company signed a third conditional supply agreement with a respected European multinational distributor of dairy products to supply nutritional milk powders and anhydrous milk fat (AMF).
The company has provided nearly 13% return to its investors on a YTD basis.
Also read: EDV, TAH, COL: How are these ASX consumer stocks placed ex-dividend
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