The Clover Corporation Limited (ASX: CLV) share price is trading higher by 1.10% today, after the company announced in its annual general meeting (AGM) that it has a pipeline of new product releases, and that it has won additional business in FY21.
What was said in today’s AGM?
Clover says that during FY20, it has faced incredible hardship with bushfires, COVID‐19, and regulatory challenges. Despite all that, the company says it was still able to deliver a solid result for the full year, which was announced in September.
Clover reported a revenue growth of 15% to $88 million, and a 35% increase in its earnings before interest, tax, depreciation and amortisation (EBITDA) to $18.9 million for the full year. The company says that it achieved those results without receiving any government support such as JobKeeper.
Clover highlighted that although the underlying demand in the infant formula market remains strong, it has experienced reduced orders for the first quarter FY21. The company says it is now reiterating its previous advice released to the market on 20 October, which stated that revenues for the first half FY21 would be down 15% to 25% to previous year.
On the day of that announcement, the Clover share price dropped by 20%.
Where future growth will come from
Clover announced its strategic growth plan for the coming years. It says that its research and development department is about to release a range of new products that will help to deliver growth in the future. It also says that its concentrated powders have won additional business in a range of new applications across bread, yoghurt, health bars and sport nutrition.
In addition, the company has participated in clinical trial work to prove the health benefits of docosahexaenoic acid (DHA), adding to the credibility of Clover’s product use and applications. DHA is an omega-3 fatty acid that is a primary structural component of the human brain, cerebral cortex, skin, and retina.
Clover says that it will continue to grow its sales across all geographical markets and food segments. The company is currently selling into Asia, the European Union and the US.
How has the Clover share price fared in 2020?
The Clover share price has had a year to forget in 2020, losing 30% of its value. As mentioned earlier, the Clover share price had dropped 20% on 20 October after the company announced weak guidance for FY21.
It is currently trading at $1.85, and the company commands a market cap of $303 million.
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More reading
- Here’s why the Clover (ASX:CLV) share price crashed 20% lower today
Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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