The goat formula portfolio delivered quarterly revenues in excess of $8m, which was also the "strongest growth driver", executive chair Dennis Lin said in the company’s activity statement released last Friday.
Overall, the company, which sells both goat and organic cow milk formula, saw its quarterly (Oct – Dec 19) gross revenue rise by 21% as compared to the previous corresponding period to reach $14.54m – also its highest on record.
Growth in the goat infant formula had raised the performance in the infant formula category as a whole by 77%. This category now comprises more than half (59%) of the quarter’s gross sales.
The baby food category was also up 15%, representing 7% of the gross sales for the quarter.
In contrast, sales of the other categories – the adult milk powder and fresh milk products – slumped by 28% and 54% respectively.
The adult dairy portfolio growth was impeded by the loss-making deletion of yoghurt products and the disposal of the Coach House Dairy brand assets.
The company also made the decision for the deliberate reduction in fresh dairy product lines due to poor profitability.
To keep up with the demand for its goat infant formula amid the bushfire spread, the company assured that all of its goat dairy farms have been safe from the disaster.
‘Our farms are located in an area much further west of the impacted areas and away from the current fires.
“The structure of our milk supply agreements also continues to assist farmers with certainty,” Lin said.
Besides goat infant formula, the company also owns a specialty adult goat milk powder under its Deloraine brand that is targeted at Chinese consumers.
Overall, China saw a 32% decline and represented 15% of the gross sales.
The drop was partly due to a drop in the sales of its CapriLac adult milk powder. In view of the decline, the company has plans to relaunch products and brands to reflect the premium positioning of its products during the second half of this financial year.
Nonetheless, sales dip in China had been cushioned by strong retail growth via the mother-and-baby stores. Sales to the mother and baby stores was up 44%.
The biggest growth was seen in the emerging international markets, which skyrocketed 1,319%. However, this region only accounted for 6% of the gross sales.
Vietnam is one of the new horizons that the company has ventured into.