Five ASX-listed dairy stocks on investors’ radar today

Highlights: 

• The benchmark S&P/ASX 200 index closed 1.02% strong on Monday, with 10 out of 11 sectors ending in the green zone. 
• The Materials sector was the best performing sector on ASX today, while the health care sector was the worst. 
• The S&P/ASX 200 Consumer Staples sector gained by 0.322% on ASX as of 3:29 PM AEST today. 

Today, 10 out of 11 prominent sectors under the benchmark S&P/ASX 200 sectors were trading in the green territory, including the index itself. The best performing sector was the materials sector which gained around 2.18% as of 3:28 PM AEST on ASX today (12 September).  

Meanwhile, the S&P/ASX 200 Consumer Staples sector (INDEXASX:XSJ) closed at 13089.5 points after gaining 0.296% or 38.6 points on ASX today. 

This article primarily focuses on the respective performances of five top ASX-listed dairy stocks- The A2 Milk Company Limited (ASX:A2M), Bubs Australia Limited (ASX:BUB), Bega Cheese Limited (ASX:BGA), Australian Dairy Nutritionals Group Group (ASX:AHF) and Synlait Milk Limited (ASX:SM1). 

The A2 Milk Company Limited (ASX:A2M) 

Australian dairy business, The A2 Milk Company Limited (ASX:A2M) shares closed 2.517% higher at AU$5.700 per share on ASX today (12 September). 

The food and beverage giant, on Monday, shared an update on the State Administration for Market Regulation (SAMR) regarding the renewal of A2 Milk’s China label infant milk formula, which is produced by Synlait (ASX:SM1). 

Renewal of existing GB registration 

As already announced in A2 Milk’s FY22 results earlier, the company’s China-label infant milk formula product registration was due to expire in late September 2022. Therefore, Synlait had received notification from SAMR about the renewal of the registration.

As a result, Synlait is now allowed to produce A2 Milk’s current registered China label product until 21 February 2023. After that, the company will require a new GB standard for being able to produce the milk formula. All products manufactured till now are allowed to be sold in the market after that.

New GB registration process 

In today’s announcement, A2 Milk announced that it is collaborating with Synlait to complete the registration process of A2 Milk’s China label infant milk formula products. These products will be developed by obeying the new GB standards in China.  

However, the time needed for the registration of new GB is uncertain at this moment as it is subjected to SAMR approval. 

The share price of A2 Milk has gone up by 1.79% on ASX in the last one year. On the other hand, the dairy company’s YTD-based share price gained 2.15% (as of 4:10 PM AEST on ASX today). 

Image source: © Robhainer | Megapixl.com

Bubs Australia Limited (ASX:BUB) 

Infant formula milk manufacturer Bubs Australia Limited (ASX:BUB) shares closed 0.980% higher at AU$0.515 per share on ASX today. 

In its FY22 financial results, Bubs recorded gross revenue of AU$104.2 million, up 123% as compared to the previous corresponding period (FY21). The company’s underlying EBITDA in FY22 was AU$4.8 million. The company’s group gross margin improved by 32% in the given period.  

The company believed that Bubs Infant Formula was the key earnings driver of the company. It contributed 60% of the group’s revenue compared to 49% from the previous corresponding period. 

Bubs’ newly developed Bubs Supreme A2 beta-casein protein formula range contributed around 26% of the company’s FY22 formula sales. The formula range was launched in Q4 FY22. 

Over the last 12 months, Bubs’ share price appreciated almost by 35.53% on ASX. Furthermore, the company’s YTD-based share price gained almost by 10% (as of 4:10 PM AEST on ASX today). 

Bega Cheese Limited (ASX:BGA) 

Australian cheese manufacturer Bega Cheese Limited (ASX:BGA) shares closed 2.110% higher at AU$3.870 per share on ASX today. 

Recently, Bega Cheese announced its full-year audited results for FY22 ended on 30 June 2022. In the given period, the company’s revenue exceeded AU$3 billion. On the other hand, Bega cheese reported normalised earnings of AU$180.1 million and statutory earnings of AU$149.9 million in FY22. 

In FY22, Bega cheese generated a net operating cash flow of AU$158 million and reduced its debt by AU$60 million to AU$265 million.

Bega Cheese’s share price fell over 29% over the last one year on ASX. Moreover, on a YTD basis, Bega’s share price declined over 30% (as of 4:10 PM AEST on ASX today). 

Australian Dairy Nutritionals Group (ASX:AHF) 

Dairy firm operator and manufacturer of premium dairy products Australian Dairy Nutritionals Group Group (ASX:AHF) shares gained significantly on ASX on Monday. Australian Dairy Nutritionals shares closed 6.153% strong at AU$0.069 per share on ASX today. 

Australian Dairy Nutritionals Group released its fully audited FY22 results on 31 August 2022. 

Key highlights of AHF’s FY22 results: 

• In FY22, Australian Dairy Nutritionals completed the vertically integrated strategy with a commercial production of organic A2 infant formula to be launched in October 2022 in Chemist Warehouse. 
• The company reported a consolidated EBITDA loss of AU$3,020,918 in FY22, compared to an AU$5,342,519 loss in FY21. 
• The company revaluated its farm portfolio up by AU$7,160,545, or by 59% in FY22, to AU$20,491,617 at the balance date. 
• AHF’s net assets increased by AU$5,961,522 from FY21 to AU$39,948,487 in FY22. 
• The company’s net tangible assets per security increased to 7.2 Australian cents in the given period. 

During the last 12 months, Australian Dairy Nutritionals’ share price marked a gain of 38% on ASX. Furthermore, the company’s YTD-based share price gained 15% on ASX (as of 3:58 PM AEST today). 

Synlait Milk Limited (ASX:SM1) 

New Zealand-based dairy business Synlait Milk Limited (ASX:SM1) shares closed 0.96% higher at AU$3.15 per share on ASX on Monday. 

Synlait’s share price has marked a gain of 6.78% on ASX in the last 12 months. However, on the contrary, the dairy business’ YTD-based share price fell almost 5% on ASX (as of 4:10 PM AEST today).