The Keytone Dairy Corporation Ltd (ASX: KTD) share price is racing higher this morning on the back of a sales update.

Keytone Dairy is a manufacturer and exporter of formulated dairy products in Australia and New Zealand.

The company manufacturers its own products under its KeyDairy, KeyHealth and FaceClear brands. These products include premium milk and nutrition powders and health supplement capsules for the treatment of acne. 

Additionally, Keytone is a production partner for leading retailers and supermarket chains, undertaking contract packing operations for brands around the world.

Headquartered in the heart of New Zealand’s South Island, Keytone Dairy floated on the ASX in July 2018 at an offer price of 20 cents. With a share price of 29 cents at the time of writing, the company’s market capitalisation currently sits at around $74 million.

Why is the Keytone Dairy share price surging?

This morning, Keytone Dairy revealed that it has received its largest follow-on order from Nouriz to date.

Nouriz is a related party of China Animal Husbandry Group, a China state-owned enterprise, that orders whole and skim milk powders from Keytone for its Nouriz private label.

The large purchase order announced today is priced at $1.39 million and is significantly higher than Nouriz’s recent orders and forecasts. More specifically, this latest order is around 11.3 times and 1.6 times greater than Nouriz’s first and second orders, respectively.

The order will be manufactured in Keytone’s New Zealand facilities in August 2020.

Commenting on today’s update, Keytone CEO Danny Rotman said:

“These significant follow-on orders from strategic clients of the business are increasing in both frequency and size. With the New Zealand second manufacturing facility online, Keytone is well equipped to service these growing orders from Nouriz and other key strategic clients of the business and will continue to work closely with these clients, growing the product offering and volumes.”

Recent developments

Today’s announcement follows another positive update in late May regarding a new licensing agreement. The agreement gives Keytone a distribution license for a range of Baileys ready-to-drink dairy products products in Australia, New Zealand, Hong Kong and Taiwan.

Additionally, the next day, Keytone announced its full-year financial results for the 12 months ending 31 March 2020.

Headline results include total sales revenue of $22.53 million, up 799% from $2.51 million in the prior year, and cash receipts of $24.68 million. However, the company reported a full-year statutory loss of $7.45 million, up from a loss of $3.29 million in the prior year.

More reading

• Keytone Dairy share price storms 14% higher on new licensing agreement

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. 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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S&P/ASX 200 Index (ASX: XJO) investors in their 20s have a unique set of advantages over other share investors. Primarily, younger people have much more time before their retirement. This group of investors are in a fantastic position to take on more risk in search of outperforming the share market, more so than their older counterparts.

ASX 200 investors in their 20s

As investors, we’re a motley crew. We all have motley goals, motley resources and motley risk appetite. Because of this, it is important to understand your own personal circumstances and invest accordingly. The below ASX shares may be fantastic options for most investors in their 20s, but not for all. 

I am in my 20s myself and am passionate about wealth creation through share investing. As a result, I spend a lot of my time analysing the share market, economics and my portfolio. But I know that not everyone in their 20s is interested or in a position to invest. But you, just by reading this article, are already ahead of your peers when it comes to investing knowledge and potential returns. Potential returns that are all thanks to the power of time and compound interest.

3 best ASX 200 shares to buy now

EML Payments Ltd (ASX: EML)

The EML share price is still down from its 14 February high of $5.66. Shares are trading for $4.17 at the time of writing. EML is a financial services company providing solutions for payouts, gifts, incentives and rewards, and supplier payments. Although the company is exposed to mall-based retail through its prepaid cards, it also has digital solutions. The company has done a good job at diversifying through the acquisition of Prepaid Financial Services. This acquisition gives EML exposure to banking as a service (BaaS).

Pointsbet Holdings Limited (ASX: PBH)

Pointsbet shareholders have had a wild ride. The share price went from $6.65 in January, down to $1.12 in March to be at a high of $7.45 at the time of writing. That’s a whopping 80% decline followed by a 565% gain! I’m personally kicking myself for not buying during the dip, but I don’t think it’s too late to pick up shares. During the coronavirus pandemic, the company did well to continue its US licence expansion and is in a good position to grow long term once all sports are back to normal.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara has done a great job at growing market share in the US. The company has built an installed software base covering over 27% of US women screened for breast cancer. The 31 March full-year results were impressive with total revenue up 153% and subscription revenue up 106%. The gross margin also increased from 83% to 86% year-on-year. What’s more, Volpara shares are significantly down from their late November high of $2.17, currently trading at $1.36 at the time of writing.

Foolish bottom line

These ASX 200 shares are smaller, fast-growing businesses. They offer huge potential returns, but with added risk. If you’re an ASX 200 investor in your 20s, they could be great long-term market beaters.

More reading

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• Latest 3 ASX buy ideas from leading brokers

Lloyd Prout owns shares in EML Payments Limited and expresses his own opinions. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended Emerchants Limited, Pointsbet Holdings Ltd, and VOLPARA FPO NZ. 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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The Kogan.com Ltd (ASX: KGN) share price has returned from its trading halt and zoomed higher.

At the time of writing the ecommerce company’s shares are up 11% to a record high of $13.77.

Why was the Kogan share price in a trading halt?

Kogan requested a trading halt on Wednesday in order to undertake a $115 million capital raising.

This capital raising comprises a $100 million fully underwritten placement at $11.45 per share and a non-underwritten share purchase plan to raise up to $15 million. The placement price represents a 7.5% discount to its last close price.

This morning Kogan revealed that its placement has completed successfully and was oversubscribed with strong investor demand from domestic and international institutions.

Kogan’s Chair, Greg Ridder, commented: “We would like to thank our existing shareholders for their strong support for this capital raising, and also recognise the overwhelming interest from new investors.”

“We recognise the significant trust placed in our management team to deliver a strong return on your capital, and we have every confidence the team will rise to the challenge. To all our shareholders, your company has gone from strength to strength since listing and, with the capital we have raised this week, your company is now stronger than ever,” he added.

Why is Kogan raising capital?

Kogan chose to raise capital in order to provide it with the financial flexibility to act quickly on future value accretive opportunities.

These opportunities are ones that it feels broaden its offering, expand its customer base, or enhance its operating model. Much like its acquisition of replica furniture and homewares retailer Matt Blatt for $4.4 million last month.

While the company has not revealed what it has its eyes on, management notes that multiple opportunities are presenting themselves already.

And judging by its share price reaction today, investors appear confident that Kogan will spend these funds wisely and drive further strong growth in the coming years.

More reading

• Afterpay share price up 7%, ASX 200 edges higher
• 3 top ASX shares to buy now to get rich later
• ASX winners and losers from last week’s rally
• Kogan announces $115 million capital raising to fund future acquisitions
• Can Kogan.com survive Amazon?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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