Beston Global Food Company Ltd [ASX:BFC] climbed by a healthy 6.82% this morning.
They operate on a market cap of $101.96 million and an enterprise value of $92.33 million
Beston Global operates in five different segments, dairy, seafood, healthy meat, and distribution. They also invest in businesses across Australia and internationally that specialise in food and beverages.
Incorporated in 2014, Beston Global distributes products through its third parties and an online platform.
Beston’s aggressive business movement
Late February, Beston announced it had acquired the remaining stake in Scorpio Food.
The purchase was made as part of a larger programme to increase revenue and profits across the processed meat business.
The programme also included the closure and sale of Scorpio’s operations in Colac, Victoria, with equipment being transferred to their plant in Shepparton.
Beston feels there is potential for production expansion at the Shepparton plant which has already doubled its production rate.
The general manager of Scorpio, Ian Paterson, will be replaced by Luke Bramston as general manager.
Beston has managed to win a number of new contracts, which include Costco for its Yarra Valley products.
Lately they have been producing mozzarella from its new plant in South Australia.
The plant is state of the art and is Beston’s largest capital expenditure project.
The brand-new plant can produce 16,000 tonnes of mozzarella and increase the overall production of whey products.
Gunning for dairy
By mid this year, Beston aim to produce 40% more milk.
Chief Executive Sean Ebert stated:
‘We have strengthened the competitive platform of our dairy business through stronger brand positioning, winning national industry awards to enhance the premium quality and reputation of our products and improved distribution channels both domestically and through Asia.’
According to Bestons’ ASX presentation, the dairy section of the business produces 85% of all their sales.
Beston wish to expand their production capacity as well as sales and distribution, so they may accumulate higher earnings.
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