Beston has delivered both record sales and a record loss as the drought and writedowns hit
Beston has had a tough year with several factors contributing to a record loss.
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Beston Global Food Company has posted its worst result since listing on the ASX, with a loss of $26.97 million recorded.
There were several significant impacts on the result, the company said, including a $5.9 million impairment to its investment in health product company NBI, a $2 million loss on milk trading and $2.7 million in inventory disposals.
All of the company’s divisions posted a loss and the company had just $1.9 million on hand at the end of the year, down from $4.4 million the previous year.
On the upside, revenue increased by 77 per cent to $85.2 million.
The company said it had restructured the business last year, and the results were starting to bear fruit in the second half, “and particularly in Q4 with increased margins on sales, higher production yields, annualised cost savings of around $6 million, and an increase in cash available to the business’’.
“Demand for our products exceeded our capacity to supply in the period, with each month ... showing positive operating cash flows,’’ the company told the ASX.
“The directors of Beston remain confident about the direction and future performance of the company.
“Notwithstanding the drought-induced challenges in FY19 and the tough operating conditions, we have increased the top-line revenues margins and operating profits and cash flows over the previous financial year.’’
The company said it had forward-sold 82 per cent of its budgeted dairy production for 2019-20, at higher margins.
Beston shares were trading 4 per cent higher at 10c.