Jatcorp profits from China dairy market penetration

China dairy export focused manufacturer Jatcorp has reported rising sales and profits for the quarter ending 30 June 2024.

The company told investors that quarterly revenue increased 13.5 percent compared to the previous quarter to $16.8 million while gross profit increased to $6.14 million, a rise of 10.4 percent from $5.56 million on the previous quarter.

Operational EBITDA increased to a record $3.32 million, up by 23.8 percent compared to the previous quarter.

Jatcorp’s CEO Sunny Jianxin Liang said: “The growth in Jatcorp’s revenue and profit this quarter demonstrates the successful execution of our strategy in targeting consumers seeking products that help them lead healthier lives.

“We are seeing increased demand for health and well-being products in our key markets, particularly for lactoferrin-based products amongst consumers in mainland China.

“Being one of the few authorised manufacturers of Australian and NZ made dairy health products able to supply the China market, Jatcorp is well-positioned to leverage the growing demand for health products.”

During the quarter, Jatcorp improved production efficiency at its Australian Natural Milk Association (ANMA, pictured) facility in Melbourne through the integration of new machinery and improved packaging and inspection processes.

ANMA tub/tin production line is running at approximately 60 percent capacity while the sachet line running at full capacity.

Jatcorp also invested in its manufacturing operations and the company anticipates the installation and commencement of a new sachet line machine with automatic packing in early FY25, boosting capacity by 70 percent.

“We anticipate forming more strategic partnerships, so have further improved the scalability of our ANMA factory with a new sachet product line to bolster production capacity for the design, packaging, labelling and distribution of dairy and plant-based health formula products.

“Jatcorp continues to expand its market presence by attending industry trade shows and conferences in target markets, growing its presence through physical stores and on ecommerce marketplaces, and collaborating with its partners to distribute its high-quality product range.”

Following a court judgement in China and the Supreme Court of NSW, Jatcorp’s subsidiary Sunnya regained its ownership of intellectual property assets relating to the Neurio brand for the cross-border e-commerce (“CBEC”) channel in China.

Sunnya has established new flagship stores under the Neurio brand on three of China’s leading e-commerce marketplaces, Alibaba’s Tmall Global, Pinduoduo, and JD Global.

The Neurio products are also being ranged in more than 40 third-party e-commerce stores in mainland China.

Distribution of Neurio-branded products has also begun into physical stores in Hong Kong and Vietnam .

Picture: Jatcorp/Australian Natural Milk Association facility, Melbourne