What happened to The Food Revolution share price?
At the time of writing, shares of The Food Revolution [ASX: FOD] are up by 31.11%, to 5.9 cents, in today’s trading.
The Food Revolution is a food processing company focused on high-quality juices, fibres, infused fruits, fruit waters and bioactives sold as branded products or ingredients around the world.
Why did The Food Revolution shares do this?
The Food Revolution announced a trading update today. Branded products keep demonstrating strong performance, encompassing 41% of net sales. Branded products are growing at 37% year-on-year, with significant capacity available to drive sales in the future.
What now for the Food Revolution Ltd?
Here’s the latest revenue breakdown:
Source: The Food Revolution
Revenue growth is reasonable, with significant potential to grow. The fresh and natural plant is running at 37% capacity! The company needs to secure more contracts and is actively talking to Chinese distributers to boost sales.
The Food Revolution is also innovating new products to launch over the next 12 months.
Unfortunately, the EBITDA margin remains tight and the NPAT margin is extremely low, which isn’t attractive. It’s clear why the company doesn’t publish regular profitability numbers, and that weighs on the share price in my opinion. That said, if the company can execute its Chinese distribution plan and ramps up production via new and established products, the share price could react favourably.
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