Pantry stacking during the Covid-19 pandemic played a part in food technology company Clover Corporation delivering a 23.6 per cent lift to profits in the 2020 financial year.
The company, which supplies microencapsulation technology enabling tuna, fish, fungal and algal oils to be added to infant formula, foods and beverages, reported net profit after tax of $12.5 million, up from $10.1 million.
Revenue was boosted during the final six months of the year, helping sales climb 15.1 per cent to $88.3 million.
New products and entering new markets also boosted growth during the year.
Clover saw sales growth across Australian, New Zealand and Asian markets driven by infant formula demand and consumer interest in Omega 3 fatty acids.
European sales grew as food infant formula manufacturers adjusted their products to comply with new standards.
However the pandemic curtailed new product development in the United States, with a number of development projects placed on hold.
During 2019 Clover invested in Melody Dairies which built a new nutritional spray dryer in Hamilton, New Zealand, adding to the company’s Australian manufacturing capacity.
Its Docosahexaenoic acid (DHA) powders won additional business in new applications such as yogurt, health bars and sports nutrition.
The company has transitioned from being purely a food company to one focused on its proprietary microencapsulation technology, product development and commercialisation.
Its technologies prevent sensitive oils from oxidation, allowing them to be added safely to foods.
The company’s balance sheet strengthened, leaving it with net debt of $5.4 million.
Picture: Clover Corporation
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