Just over one month after launching a $25 million capital raise, dried fruit company Murray River Organics (ASX: MRG) has scored a major deal with an Australian supermarket.
The company has secured two new contracts worth approximately $15 million over two years with an unnamed Australian supermarket retailer.
MRG CEO Valentina Tripp says the new contracts are the result of the company's strategy to work closely with the Australian retail market.
"We have been building our relationships through extensive collaboration, numerous site visits and engagement with our growers, as well as joint planning with our retail customers over the last nine months," says Tripp.
"We are delighted that the program is delivering and enabling us to secure material contracts going into FY21."
The deal comes on the back of the company's recently announced new MRO branded range which will include eight new products to be stocked on the shelves of a major supermarket.
The new range is expected to generate between $5 million and $6 million per annum for MRG when it hits the shelves on 1 June 2020.
Covid-19 creates shipping headaches for MRG
As the coronavirus infects virtually every industry in the Australian economy Murray River Organics has announced its preventative measures as its supply chain idles.
The company says it has experienced delays to shipping and orders in February and March and anticipates this to continue indefinitely.
"MRG has implemented preventative measures to reduce risks to its people and operations at all sites including social distancing, limiting visitors to sites unless critical to operations, meetings using technology and remote working where possible," says MRG.
Further, MRG says there is uncertainty to the impacts on its export and fresh programs as well as import supply chain delays.
"Given the current uncertainty about the impact of Covid-19 on the Company's operations, it is not possible for the Company to reliably quantify the potential impact on MRG's financial performance."
"The priority during this period of uncertainty is to maintain MRG's current balance sheet strength and position."
Shares in MRG are up 20 per cent to $0.01 per share at 2.45pm AEDT.
Business News Australia