Noumi recorded a positive third quarter, with revenue up 5.6 per cent to $137.5 million compared to 3Q23. Its Plant-based Milks business was up 12.5 per cent pcp to $42.7 million, while Dairy and Nutritionals rose 2.8 per cent to $94.9 million.
The company said its focus is on the margins in Dairy and Nutritionals and opportunities for Plant-based Milks.
That said, while Plant-based Milks sales were good in Q3, Noumi said it is still cautious about the macro-economic environment and consumer spending, particularly in Australia.
The Plant-based Milks segment recorded 29.3 per cent growth in the domestic retail channel, export revenue was up 40.5 per cent, and Milklab plant-based sales rose eight per cent pcp.
Milklab Oat’s performance was strong, with increased distribution seeing sales increase 36.4 per cent pcp. Milklab Almond sales rose 4.5 per cent, and Noumi’s Australia’s Own plant-based portfolio rose 5.9 per cent. Private label sales were up 18.7 per cent with new supply agreements and strong demand in the domestic retail channel.
But global dairy prices continued to create challenging conditions for the company’s long-life dairy milk export sales and bulk commodities. Noumi said all Australian dairy exporters at a disadvantage due to price competition from lower-cost countries, but domestic conditions for Dairy were “satisfactory”.
Commodity prices for products such as bulk cream have been weak in FY24, impacted by global conditions, with revenue down 16.5 per cent compared to the same quarter in FY23 and continuing in the current quarter.
Total Dairy and Nutritionals revenue increased to $94.9 million, up $2.6 million or 2.8 per cent pcp, largely reflecting the positive impact of higher prices in domestic retail markets to offset the significant rises in farmgate milk prices.
Total Nutritional Ingredients sales were down 19 per cent, with lactoferrin sales down 17.5 per cent due to previously disclosed disruption to production. Noumi said global demand for lactoferrin remained strong and it expected 4Q24 production to be higher than Q3.
In Consumer Nutritionals, sales were up 0.2 per cent, with new products driving growth in Vital Strength (up 3.3 per cent). This growth was offset by lower sales of Uprotein and Crankt products.
Domestic Dairy long-life sales were up 18.4 per cent pcp, with out-of-home channel sales up 29.9 per cent. This was mainly a reflection of the growth in Milklab Lactose Free.
Dairy long-life sales to export markets were down 7.1 per cent compared to Q3 FY23 reflecting the planned reduction in low margin export market volumes and price competition from other international suppliers.
