Clover Corporation (CLV) H1 2025 earnings summary

Executive summary

• Revenue increased 38% year-over-year to AUD 37.6 million in 1H FY2025, driven by recovery in Europe and ANZ, new product sales, and diversification into pet food, nutraceuticals, and sports nutrition.

• EBITDA rose to AUD 4.3 million, reflecting improved sales, gross margin, and operational efficiencies.

• Net profit after tax reached AUD 2.4 million, reversing a prior year loss of AUD 0.6 million, enabling a fully franked interim dividend of 0.75 cents per share.

• Growth was supported by product and market diversification, manufacturing efficiencies, and expansion into new segments and geographies.

Financial highlights

• Revenue reached AUD 37.6 million, up from AUD 27.3 million in the prior year period.

• EBITDA increased to AUD 4.3 million from AUD 0.3 million in 1H FY24.

• Gross margin improved by up to 270 basis points to 29.6%, driven by favorable customer/product mix and manufacturing performance.

• Cash position at AUD 15.4 million as of 31 January 2025, with working capital reduced by AUD 4.9 million.

• Interim fully franked dividend of 0.75 cents per share declared.

Outlook and guidance

• Board expects momentum from 1H FY2025 to continue, with a stronger second half anticipated if current demand and global conditions persist.

• Gross margins expected to hold or improve slightly in 2H, supported by lower-cost Ecuador oil and favorable customer mix.

• OpEx projected to rise 4%-5% in 2H due to increased headcount, R&D, and incentive provisioning.

• Regulatory approval for new products like Premneo and commercial rollout of Choline XL targeted in coming periods.

• Strategic focus on integrating Ecuador facility, optimizing Melody Dairies, and expanding product diversification.