Clover Corporation (ASX: $CLV) 1H24 Performance Highlights

Clover Corporation (ASX: $CLV) has reported its half-year performance highlights for the 6 months to 31 January 2024. The company's revenue decreased by 39% to $27.3m compared to the record 1H23 revenue of $44.4m. The net loss after tax was $0.6m, down from $3.6m in 1HFY23. Operating expenses decreased to $7.1m, impacted by reduced travel and cost reduction focus. The company also highlighted its focus on building new customers and products to continue diversifying the revenue base. Additionally, the balance sheet remains strong with cash of $8.1m, and no interim dividend was declared to focus on capital management priorities and key projects.

Executive Commentary on 1H24 Results

The company's half-year results reflect a challenging period with a significant revenue decrease. The decline in European and Middle Eastern sales, along with a slowdown in infant formula sales, has impacted the overall performance. However, we have actively managed expenses through travel and personnel, while focusing on research and development. The investment in new market development and mitigating supply chain risk has impacted the net profit after tax. Despite these challenges, the underlying net profit after tax result was breakeven, excluding the impact of market development and Melody Dairies.

Summary of 1H24 Results and Outlook

Clover Corporation's 1H24 results indicate a tough period with a 39% comparative revenue decrease. The company has focused on expense management and diversifying its customer base and products to navigate the sales downturn. Additionally, the update on growth platforms highlights ongoing efforts in new product development and market expansion. Looking ahead, the company remains committed to diversifying its customer base and exploring new markets and products. Despite the uncertainty surrounding the recovery of the infant formula segment and the market acceptance timeline for new products, Clover anticipates FY2024 revenue to range between $60m to $70m.