Strong growth in H1 FY22 for Halo Food Co was driven by its consolidated group EBITDA profitability – a 223 per cent increase compared to the previous year and a new record for the group.
The company’s H1 FY22 results have substantially improved, with sales increasing to $27.8 million – a 14 per cent increase to the prior corresponding period.
Snapshot
- 25% growth in New Zealand Dairy, totalling $6.6m;
- Australian contract manufacturing grew to $19.9m;
- $2.8m decrease in net cash utilised in operating activities; and
- $3.3m cash balance on 30 September, compared to $4m on 31 March
Halo CEO Danny Rotman said the company experienced fast progress over the past six months.
“The group has continued to advance at a double-digit rate both in Australia and New Zealand and secure multiple material contracts, which will begin to contribute to the financial results of the group in the second half of FY22.
“With the scale now realised, the group has hit normalised underlying group EBITDA profitability,” said Rotman.
In November, formulated dairy product manufacturer Keytone Dairy rebranded as Halo Food Co and announced a $54.3 million deal with Chinese brand distributor Theland New Cloud Digimart to develop and manufacture its powdered dairy products in China.
Due to prolonged Covid lockdowns in Australia and temporary closure of essential distributors and retailers, sales in the brand division reduced from $1.8 million to $1.4 million. The group’s consolidated group EBITDA results were its major win, with a normalised loss of $0.9 million bouncing back to a positive $1.1 million.
“The capex and expansion program of the protein bar and healthy snacking plant has been largely completed through the first half of FY22 and the plant has been in commercial operation from September onwards.
“This plant complements our existing manufacturing offering across powders and UHT long-life drinks, rounding out the group’s capability in the health and wellness manufacturing space,” Rotman.
Rotman added that the group’s second half of FY22 will include its protein bar plants’ results which have exceeded expectations.
With the group’s results not inclusive of recent contract wins, Rotman said the company is well positioned for a strong FY22 finish.
