Jatcorp (ASX: JAT) reports strong revenue growth in March quarter

2 min read | April 26, 2022 07:42 PM AEST | By Aditi Sarkar

Jatcorp (ASX: JAT) reports strong revenue growth in March quarter — Image source: © Jirsak | Megapixl.com

Highlights

The ease in pandemic restrictions has put Jatcorp in an excellent position to reap the benefits of investments made since 2020

The company’s gross revenue for the March quarter increased by 25% and 87% compared to the December and September quarters, respectively

Made three crucial domestic and international trade agreements during the quarter

Jatcorp Limited (ASX:JAT), a health and wellness consumer goods manufacturer, has demonstrated a robust performance in the quarter ended March 2022, with a remarkable 87% revenue growth compared to the September 2021 quarter.

Jatcorp develops and manufactures healthy, nutritional and innovative food products and supplements. The company offers an extensive range of in-house brands, including cow, goat and camel milk-based formulations, plant-based meat, healthy food oils and many other fast-moving consumer goods.

The company has made some significant investments since 2020, which was a challenging period due to the COVID-19 pandemic. As the pandemic has started to ease off, the company believes that now it is in a strong position to harvest benefits of those investments. Further, it is set to grow its business activities due to increasing demand in the dairy, plant-based and immunity-support sectors.

Quarter-on-quarter increase in revenue

The gross revenue of JAT for the March quarter was AU$11.95 million. This represents a 25% surge compared to the December quarter. Also, this quarter witnessed record sales ever since the September quarter of 2020.

The remarkable revenue growth was facilitated by a sales rebound coupled with easing trading conditions in the Asia-Pacific region.

Significant trade agreements of the quarter

Raised funds through SPP and private placement

The company ended the March quarter with a cash balance of AU$8.4 million. During the quarter, it fully repaid the Topwei loan worth AU$4 million. It raised AU$840,000 through a share purchase plan and AU$4.4 million through a private placement.

Looking forward to expanding global operations

The company is concentrating on nurturing several existing commercial agreements that have potential to dramatically grow JAT's global operations and create considerable shareholder value if further expanded.

Jatcorp’s shares last traded at AU$0.014 with a market capitalisation of AU$32.11 million.

Also read: FOD, MBX, TSN: Food processing ASX stocks gaining momentum

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