Food and dairy producer Longtable (ASX: LON) has defied the COVID-19 economic downturn to post EBITDA growth of $5.3 million in FY20.
The company, which operates celebrity chef Maggie Beer's beloved food brand and dairy producers Paris Creek Farms and Saint David Dairy, says success in FY20 was driven by strong sales in May and June.
Against challenging market conditions Longtable saw net sales grow by approximately 3.5 per cent year on year in FY20 and enters the new financial year with a strong balance sheet and cash reserves of $10.2 million.
Maggie Beer Products played to the e-commerce boom during COVID-19 lockdowns, launching a digital marketing plan that drove brand growth. Success can also be attributed to the new "Cooking with Maggie" series that now has more than 4.4million views.
In FY21 the company plans on launching a new Maggie Beer Products website to help continue grow online sales.
Paris Creek Farms continued its turnaround with full year net sales increasing by approximately 7 per cent compared to FY19.
The dairy producer has now received Chinese Organic Certification and is exploring export opportunities in that major Asian market with potential partners.
Saint David Dairy similarly contributed positively to the overall group cashflow and trading EBITDA, achieving double digit full year net sales growth after expanding its business further into the retail and home delivery sectors.
"The Group is passionate about making Australian premium food and beverage products using Australian produce that supports local dairy farmers, fruit and vegetable growers and their communities," says Longtable CEO Chantale Millard.
"It is pleasing to see the positive results from the work that has been done in each of the businesses over the past 12 months that will allow us to continue to deliver on our strategy and purpose.
"The businesses all resonate strongly with Australian consumers who are increasingly looking for high-quality food and beverage products, made in Australia using locally sources ingredients to enjoy every day or to entertain with at home, and we are excited by the future opportunities that his presents for the group."
Shares in Longtable are up 30 per cent to $0.20 per share at 12:19pm AEST.
Business News Australia
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