What are these 12 ASX food stocks up to?

Highlights

• The food industry has evolved over the years owing to the revolution in science and technology and changes in consumer needs.
• In ASX, the food and beverage companies come under the consumer non-cyclical sector.
• Stocks of consumer non-cyclicals belong to companies that provide essential goods and services.

The Australian food industry comprises many sectors, including agriculture and fisheries, food retail, food processing and production, food service, catering, and delivery services. The industry has undergone a drastic change with the evolution in science and technology and per consumer demands.

In ASX, the food and beverage companies come under the consumer non-cyclical sector. This sector is unaffected by inflation and market volatility as it consists of firms dealing with essential products and services.

On this note, we at Kalkine Media® will discuss some ASX-listed food stocks and their recent updates.

Ridley Corporation Ltd (ASX:RIC)

Ridley Corporation deals with animal nutrition solutions.

Following are the financial highlights of the company from the financial year 2022

• 70% year-on-year growth in net profit after tax (NPAT)
• 16% year-on-year growth in underlying earnings before interest, taxes, depreciation, and amortization (EBITDA)
• 100% franked dividend amount of 7.4cps

The share price of Ridley has appreciated by about 59.4% in the last 52-weeks.

Tassal Group Ltd (ASX:TGR)

The stock price of the Australian Salmon farming company has escalated by about 51.6% in the past 52-weeks.

During FY22, the company delivered 33% year-on-year growth in revenue to AU$789 million. Similarly, its operating EBITDA and NPAT were up by 25% and 32% year on year to AU$175million and AU$64 million, respectively.

Bubs Australia Ltd (ASX:BUB)

The share price of Bubs Australia has been up by about 46.9% in the past 52-weeks. The company specializes in goat milk formula meant for baby food. Its products are marketed in Australia, China, and the USA.

FY22 financial review of BUB:

• 123% increment in gross revenue to AU$104.2 million
• Underlying EBITDA profit – AU$4.8 million
• Gross margin of 28.9% compared to 7.3% of FY21

Australian Dairy Nutritionals Group (ASX:AHF)

The share price of the quality dairy producer has escalated by nearly 39.2% in the past 52-weeks.

During FY22, the firm’s revenue declined by 31%, and it suffered a loss of AU$4.14 million. During the financial year, the company’s major activity was the ownership of dairy farms through the Australian Dairy Farms Trust and the creation of a subsidiary of the Company, Regen Properties Pty Ltd.

Graincorp Ltd (ASX:GNC)

Graincorp recently updated its FY22 earnings guidance. The company has raised the range for FY22 underlying EBITDA to AU$680-730 million (previously $590-670 million) and FY22 underlying NPAT to AU$365-400 million (previously $310-370 million).

Shares of Graincorp have gained nearly 31.6% in the last 52-weeks.

Australian Agricultural Company Ltd (ASX:AAC)

The company’s sales results for FY22 are as follows:

• Meat sales - AU$208.5 million, a growth of 4% compared to the previous corresponding period (PCP)
• Wagyu meat sales – 21% increment versus PCP
• Branded meat sales – 83% increment

AAC has gained almost 27.1% in the past 52-weeks.

Murray River Organics Group Ltd (ASX:MRG)

During FY21, MRG continued launching new Murray River Organics (MRO) branded products. It also expanded its export offerings through partnerships in Europe, Asia, and other major international markets. The company’s revenue declined by 11.88% during the reporting period.

The share price of MRG has gained nearly 6.5% in the past 52-weeks.

Clean Seas Seafood Ltd (ASX:CSS)

During FY22, the sales volume of Clean Seas Seafood was 3,757 tonnes, an increment of 19% compared to FY21. Similarly, its revenue went up by 37%. The company’s production costs also declined by 19%, and it is expecting further improvements in FY23. The company’s statutory profit for the financial year was AU$8.7 million.

The stock value of the Australian seafood production company has appreciated by about 15.1% in the last 52-weeks.

Yowie Group Ltd (ASX:YOW)

The stock value of Yowie Group Limited has soared by around 11.4% in the past 52-weeks. During FY22, the company’s revenue from ordinary activities went up by 24% to US$15.60 million however, its net profit for the period was down by around 6% to US$839k.

The company’s CEO stated that during the financial year, Yowie had to deal with inflationary pressures in raw materials, uncertainty in retail and manufacturing environments, and increased costs related to freight and production.

Treasury Wine Estates Ltd (ASX:TWE)

Treasury Wine Estates recently announced a dividend amount of AU$ 0.16 for the half year of FY22. In the full-year results of FY22, the company reported 2.6% growth in EBITS and a 21.1% EBITS margin. Similarly, its NPAT for the financial year grew by 4.2% to AU$322.6 million.

Headquartered in Melbourne, Treasury Wine is one of the most renowned wine manufacturing firms in the world. Its share price has been up by around 9.2% in the last 52-weeks.

Duxton Farms Ltd (ASX:DBF)

The share price of Duxton has gained about 8.9% in the last 52-weeks. The company has a diversified portfolio of superior-quality, efficient Australian farms.

During the financial year ended 30 June 2022, the company’s revenue from ordinary activities declined by 6.71%. The net loss for the period was AU$3.16 million.

According to the company, the results for the period were majorly impacted due to wet end to winter imposing difficulties in harvesting and some of the worst flooding in history.

Endeavour Group Ltd (ASX:EDV)

The share price of the retail drinks and hospitality business company has appreciated by around 3.4% in the last 52-weeks. Following are the financial highlights of FY22 for the company:

• AU$11.6 billion in sales
• AU$924 million of EBIT (2.8% growth)
• AU$495 million of profit after tax (11.2% profit after tax)
• Earnings per share increased by 11.3%