Are these 5 Dairy stocks best in class - Keytone Dairy, A2M, Synlait, Bubs and Bega

  • Dec 18, 2019 AEDT
  • Team Kalkine
Are these 5 Dairy stocks best in class - Keytone Dairy, A2M, Synlait, Bubs and Bega

Australian Dairy Market

Australia is the third world largest dairy exporter, with approximately 50 per cent of its production exported to other countries. The Australian dairy industry is considered to be one of the most essential agricultural industries, generating roughly $12.5 billion across the whole supply chain.

Australia produces the range of dairy products such as butter, Cheese, Yoghurt, Milk and Milk Powder. The Australian dairy market is s concentrated in the south-east of Australia, Victoria is the largest production state, and however other states have significant dairy industries.

The Key Export markets of Australia are:

  • China
  • Japan
  • South East Asia
  • Middle East

The dairy industry is largely dependent on the availability of water. According to the Australian Government of Agriculture (ABARES), the rainfall in various parts of Australia has been recorded comparatively low to the previous year. The government of Australia stated that July 2019 was dry across New South Wales and South Australia.

Let us discuss five stocks from the dairy sector and their recent updates

Keytone Dairy Corporation Limited (ASX: KTD)

Keytone Dairy Corporation Limited is engaged into the manufacture and export of dairy and nutritionary products. The company earns the majority of revenue from product export outside New Zealand.

Change of Company Secretary

On 16 December 2019, the company has announced to change of its company secretary. The company has appointed Ms Heidi Aldred as a Company Secretary with effect from today. Keystone also announced that Mr Dean Jagger has resigned as Company Secretary with immediate effect. The company’s Board thanks Mr Jagger for his services to the Company.

Second Manufacturing Facility receives Regulatory Approval

On 16 December 2019, the company has announced that second manufacturing facility in New Zealand has received all required licensing approvals from the New Zealand Ministry of Primary Industries (“NZMPI”) and by extension, CNCA for the manufacture and export of formulated dairy nutritional products. The receipt of this required license from NZMPI enables the immediate commissioning of the plant ahead of full-scale production.

The second manufacturing facility has been constructed to comply with the highest food grades standards. The company’s new facility is now ready to commence full scale production. The company has tripled its manufacturing capacity in New Zealand one a one-shift basis.

To know about the company’s second order from Wal-Mart China click here

Stock Performance of KTD

The stock of KTD was trading at $0.41 on ASX on 18 December 2019, down by 3.529 per cent (at AEDT 12:58 PM). The company has a market cap of $91.42 million and approx. 215.12 million outstanding shares. The company’s 52-week high and low value of the stock is at $0.700 and $0.320, respectively. The stock has generated a negative return of 12.37 per cent in the last six months and a negative return of 10.39 per cent on a year-to-date basis.

The A2 Milk Company Limited (ASX: A2M)

The A2 Milk Company Limited is involved in producing, marketing and selling of branded milk and milk-related products. The company operates through four regions i.e. China, New Zealand, Australia and Other Asia.

Becoming a Substantial Holder

On 13 December 2019, the company has announced UBS Group AG and its related bodies corporate has become the substantial holder of the company with effect from 10 December 2019. The UBS Group AG has 37,011,471 total number held in classes and total percentage held in class is 5.03 per cent.

Material Employment Terms of Interim CEO

On 9 December, the company has announced that the former Managing Director Geoffrey Babidge has agreed to resume the position of Interim CEO with effect from 9 December 2019. Total Fixed remuneration of the CEO was $1,600,000 per annum including superannuation. The company’s CEO entitled a bonus of 20 per cent and 40 per cent of Total Fixed Remuneration, payable entirely at the discretion of the Board at the end of Geoffrey’s tenure as Interim CEO.

To know about the financial performance for FY 2019 click here

Stock Performance of A2M

The stock of A2M was trading lower at $14.700 on ASX on 18 December 2019, up by 0.962 per cent (at AEDT 1:02 PM). The company has a market cap of $10.71 billion and approx. 735.88 million outstanding shares. The company’s 52-week high and low value of the stock is at $17.300 and $9.810, respectively. The stock has generated a positive return of 5.05 per cent in the last six months and positive return of 40.00 per cent on a year-to-date basis.

Synlait Milk Limited (ASX: SM1)

Synlait Milk Limited manufactures and sells dairy product and related products. Synlait Milk is a New Zealand based dairy processing company which produces a range of nutritional milk products.

Launch of Synlait Native Tree Programme

On 12 December 2019, the company announced the native tree programme “Whakapu?wai” unveiled by Prime Minister of New Zealand. The environmental programme has a wide reach that includes the formation of an industrial scale nursery to grow native plants. The plant has an ability to cultivate beyond a million native trees and shrubs every year.

The company’s CEO commented:

To know about the company’s Book building and bond offering click here

Stock Performance of SM1

The stock of SM1 was trading at $8.320 on ASX on 18 December 2019, falling by 2.347 per cent (at AEDT 1:04PM). The company has a market cap of $1.53 billion and approx. 179.31 million outstanding shares. The company’s 52-week high and low value of the stock is at $11.200 and $7.950, respectively. The stock has generated a negative return of 11.25 per cent in the last six months and a negative return of 0.23 per cent on a year-to-date basis.

Bubs Australia Ltd (ASX: BUB)

Bubs Australia Ltd is a producer of the nutritional packed product. The company provides organic baby food product, cereals and other nutritional products for children.

Share Purchase Plan Offer

On 9 December 2019, the company has announced the Share Purchase Plan. The SPP or Share Purchase Plan has a goal to raise up to $5 million. The offer gives eligible stakeholders of the company an opportunity to subscribe for up to $30k worth of securities in the Company without incurring brokerage or other costs. Shares are offered under SPP with an offer price of $0.95/SPP security.

To know about Bubs Distribution Agreement with Alibaba CIP click here

Stock Performance of BUB

The stock of BUB was trading lower at $0.945 on ASX at (AEDT 1:00 PM) on 18 December 2019, dipping by 0.526 per cent from its previous closing price. The company has a market cap of $518.37 million and approx. 545.65 million outstanding shares. The company’s 52-week high and low value of the stock is at $1.615 and $0.420, respectively. The stock has generated a negative return of 9.52 per cent in the last six months and the positive return of 108.79 per cent on a year-to-date basis.

Bega Cheese Limited (ASX: BGA)

Bega Cheese Limited engaged in manufacturing of dairy and food related products. The company headquartered in New South Wales, Australia is publicly listed on Australian stock exchange. Recently, on 9 December 2019, the company has announced the half-year financial period would conclude on the last Sunday of December i.e. 29 December 2019.

Appointment of CFO

On 11 November 2019, the company is pleased to announce the appointment of Pete Findlay as Chief Financial Officer. Mr. Findlay is a commercially focused Chief Financial Officer with over 20 years’ experience in professional services and senior finance and operational roles in private and publicly owned businesses.

Mr Peter Holds Bachelor of Business Accounting Degree and is a member of the Institute of Chartered Accountants.

The company financial performance for FY19 can be viewed here

Stock Performance of BGA

The stock of BGA was trading lower at $4.050 on ASX at (AEDT 1:07 PM) on 18 December 2019, dipping by 0.491 per cent. The company has a market cap of $871.98 million and approx. 214.24 million outstanding shares. The company’s 52-week high and low value of the stock is at $5.810 and $3.530, respectively. The stock has generated a negative return of 16.26 per cent in the last six months and a negative return of 17.61 per cent on a year-to-date basis.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK