Jatcorp's Q3 FY2024 Financial Performance

Jatcorp Limited (ASX: $JAT) has reported a strong financial performance for the third quarter of the financial year 2024. The company achieved a quarterly net profit of approximately $2 million (unaudited) with EBITDA reaching approximately $2.45 million (unaudited). Total revenue for the March quarter amounted to $14.8 million (unaudited), marking a significant increase of 31% compared to the prior corresponding period. Additionally, the gross profit for the March quarter saw a notable rise of 38% to $5.57 million (unaudited). The company also reported a positive net operating cash flow of $587K (unaudited), signifying a substantial improvement from the previous corresponding period's figure of -$534K.

CEO's Perspective on Q3 FY24 Performance and Legal Developments

In Q3 FY24, Jatcorp continued its growth trajectory, achieving a strong quarterly net profit of approximately $2 million. The company's performance in the Chinese market has been particularly robust, contributing to this positive outcome. Furthermore, the final judgment of the Sunnya litigation by the Supreme Court of NSW has been deemed largely successful and favorable to Jatcorp and Sunnya. This judgment confirms Sunnya as the rightful owner of the Neurio and Guamis brands in Australia and NZ, enabling lawful exports to China and safeguarding the business from external interference. Looking ahead, senior management expresses confidence in the company's profitability for the remainder of FY24 and anticipates further improvements in FY25.

Outlook and Financial Overview

Jatcorp's Q3 FY2024 financial results reflect a period of significant growth, with notable increases in net profit, total revenue, and gross profit. The company's strong performance in the Chinese market has been a key driver of this success. The favorable judgment in the Sunnya litigation has provided legal clarity and protection for Jatcorp's brands and export activities, particularly in the Australian and NZ markets. Looking forward, the company reiterates its expectation for a slow global economic recovery and acknowledges the moderate risk of recession due to stagnant supply and demand growth across developing markets. However, the current consumer demand for Jatcorp's products, especially the growth of the lactoferrin product in China, remains promising. The company's strategic focus on innovation and technology in servicing retail markets positions it well for future growth and resilience in the face of economic challenges.