Clover Corporation (ASX:CLV) reported a total full year revenue of $62.2m, in line with guidance but down on the FY23 $79.9m, driven by reduced demand in the Infant formula market. The net profit after tax (NPAT) was $1.5m, down 76% on FY23 $6.2m. Operating expenses were $12.9m, down 6.6% from FY23 $13.8m, driven by reduced head count, travel, and marketing. The company's inventory at $29.6m reduced by $7.3m compared to FY23. The balance sheet remains strong with cash of $12.2m. A final dividend of 0.75 cent per share was declared.
The second half of FY24 delivered revenue of $34.9m, an increase of 28% compared to the first half. The company saw improved orders in the last quarter, including those from Chinese customers. The inventory position closed at $29.6 million, a 19.9% reduction on the prior year. Increased attendance at trade shows and customer visits has enhanced the business's ability to connect with new customers, expanding the customer base. Customer engagement remains a key focus with continued trialling of new products to diversify and extend the business offering. The NPAT was impacted by lower sales and slowed production, with continued investment in new market development supporting future growth and mitigating supply chain risk.
Clover Corporation (ASX:CLV) reported lower full year revenue and net profit after tax for FY24 compared to FY23, driven by reduced demand in the Infant formula market. The company's inventory position closed at $29.6 million, a 19.9% reduction on the prior year. Despite the challenges, the company remains focused on customer engagement, trialling of new products, and diversification to extend its business offering. Looking ahead to FY25, Clover aims to build on the demand profile achieved in the second half of FY24. Diversification remains a core focus, with the company's powders being used in the nutraceutical markets, providing a channel for growth outside the infant formula market. The company also aims to achieve regulatory approval for Premneo in ANZ & EU and align with packaging and distribution partners.