Opening up the quarterly report from Pure Foods Tasmania (ASX: PFT), you are greeted by a stunning vista from where you’d rather be, good enough to rattle us locked down Victorians (please let us out please let us out please let us out).
Founded in 2015 to acquire, grow and develop premium food businesses in Tasmania, the Company has developed brands both organically and through acquisition. All brands are available for purchase via their eCommerce platform both direct to consumers and businesses to facilitate broader distribution of their product range. The pandemic obviously did not stand in the way of people’s appetite for premium foods with online store sales up 332% for the year.
For the year ending 30 June 2021 PFT reported a group sales revenue increase of 70% to $8.2 million compared to the previous year. Sales growth was experienced across all brands for the quarter with the exception of the Daly Potato Company which held steady over the winter months but without significant sales increase.
Other notable achievements across the Company include the securing of national sole supplier status of Woodbridge Smokehouse for smoked salmon and trout products with distribution partner Monde Nissin Australia. Monde Nissin has also extended distribution in most states. Sole supplier status has the potential to increase group revenue by as much as 15% over the next financial year. Woodbridge has also locked in distribution deals with Tas’Mania Fresh for FY22 which will see their product land on the shelves in six major retail chains in Hong Kong. The Woodbridge brand saw a 79% increase in sales growth in Q4.
Another PFT brand, Tasmanian Pate provided locked down Aussies a way to jazz up their cheese platters. The range saw 14% sales growth over the quarter with more expected next quarter following their new product launch into 850 Woolworths stores nationally.
Winter rarely provides optimal picnic or BBQ weather meaning that Daly Potato Company sales dragged their feet. The potato salads pulled in a 0.6% increase in sales growth for the quarter. PFT is expecting this will grow in warmer months following the national rollout of a premium homestyle coleslaw product and other new products under development. Their new potato and gravy offering will hopefully become a winter season sales support. The ready to eat potato and gravy will be sold alongside roast chicken and coleslaw for a proposed retail price of $20. The Company believes this bundle to be a big opportunity considering that 95 million BBQ chickens are sold each year through retail stores in Australia to a value of $1 billion.
The Company’s plant-based foods brands have both performed well with Lauds Plant-Based Foods sales growing by 52%. As distribution channels continue to grow and sales gain momentum through their newly launched online store, this brand could have a serious upward trajectory.
Acquired in March 2021, vegan ice cream producer The Cashew Creamery has experienced 38% sales growth over the last quarter as well as a stockist base increase of 167%. The brand is expected to launch nationally in IGA stores in September 2021.
PFT Managing Director and CEO, Michael Cooper said: “The June quarter was another strong period of growth for the Company. Since listing in April 2020, we have delivered 4 continuous quarters of revenue growth, increasing our quarterly revenue level by 98%.”
“We continue to organically grow our core business via new product ranges, distribution channels and the success and growth of our e-commerce platform. The new distribution channels we launched during the quarter with Monde Nissin and Tas’Mania Fresh reflect the strong demand for our Woodbridge Smokehouse product and provide a significant avenue of growth for FY22 and beyond.
“We have executed on three acquisitions which have strategically complemented our business and fast tracked our scale and growth in the emerging plant based food market. The acquisitions have been seamlessly integrated into our business with the management teams and founders of those acquired businesses remaining crucial components to our future success. We will continue to target complementary and value adding acquisitions to continue to drive our growth and position the Company as a local leader in the rapidly growing plant-based foods sector.”
With $1.6 million cash in the bank and undrawn debt facilities, the Company will continue to focus on further acquisitions particularly in the beverage industry. Combination and cross promotional opportunities between brands are also set to be explored as well as product trials and development into other categories.
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