Wattle Health Australia Ltd (ASX: WHA), from the Food, Beverage & Tobacco sector which is into the business of developing and manufacturing consumer food products in Australia, announced that its Certification and Accreditation of the Peoples Republic of China (CNCA) for manufacturing infant formula got renewed by Blend and Pack Pty Ltd (B&P). B&P is not only the largest independent, nutritional dairy manufacturer in Australia but is also amongst the fifteen CNCA accredited manufacturer for infant formula for the People’s Republic of China which is world’s largest nutritional diary market. B&P produces various domestic and international brands.
WHA being the shareholder of B&P and an important nominated brand of the State Administration of Market Regulation (SAMR), makes it confident in stepping ahead towards the Chinese market after the renewal of Certification and Accreditation of the CNCA.
The official listing date of WHA on ASX is 15 March 2017, where the performance of the company was 373.60%. However, its last year’s performance was -47.81%.
For the FY2018, which ended on 30 June 2018, Wattle Health Australia Ltd made a net loss of $19.839 million. The balance sheet of WHA looks healthy with a strong net asset base of $61.539 million and a debt to equity ratio of 0.045 which indicates that the company is financially sound to manage its long-term obligations. Having a low debt to equity ratio of WHA shows that the company tries to use its resources for funding any financial requirement within the company. However, as compared to the FY2017, there is an increase in the accumulated losses in the fiscal year 2018 by 4.45 times which is an indication of the weak operating performance of the company. Also, it might create a negative influence on the shareholders of the company.
There was an increase in the net cash and cash equivalent of $50.090 million by the end of the fiscal year 2018. The primary source of the cash inflow was through the issue of shares where the company was able to generate around $62.595 million. By the end of the financial year 2018, the net cash and cash equivalent available with Wattle Health Australia Ltd was $55.843 million.
After getting listed on ASX, even though its last one-year performance was quite poor, but it appears that the investors and the shareholders still have hopes with the company as its earlier performance was 373.60%. Above that, its recent announcement of the Certification and Accreditation of the Peoples Republic of China for the manufacture of infant formula might have made them confident that the company is stepping towards its global expansion which might improve the performance of the company shortly.
By the end of the trading on 8 January 2019, the share price of WHA zoomed up by 6.011%. The opening price of the stock was A$0.940 which is also the lowest price of the day. It went as high as A$0.995 with the stock holding a market capitalization of A$177.97 million.
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