TasFoods Q1 2024 Business Activity Report and Appendix 4C Quarterly Cash Flow

TasFoods Limited (TasFoods, ASX: $TFL) has released its Business Activity Report and Appendix 4C Quarterly Cash Flow for the quarter ended 31 March 2024 (Q1 2024). The report highlights revenue growth in the Poultry division of 7% compared to the prior comparable period (PCP) and a 9% revenue growth in the Pyengana Dairy division compared to PCP. The company continues to receive strong feedback on the recently launched Isle & Sky pet treats range and has successfully integrated the Redbank Poultry hatchery business ahead of expectations.

Executive Commentary on Q1 2024 Performance

TasFoods has strategically realigned its operational focus to operate largely as a poultry-focused business, ensuring the sales mix is heavily weighted to core consumer consumption patterns. The company remains confident in the growth potential of the Isle & Sky pet treats range and is actively reviewing and implementing operational and strategic initiatives to establish a more resilient business model for the Poultry division. The successful integration of the Redbank Poultry hatchery business has delivered security, control, and financial benefits to the poultry supply chain.

Summary of Q1 2024 Report and Outlook

TasFoods reported a 7% revenue growth in the Poultry division and a 9% revenue growth in the Pyengana Dairy division compared to the prior comparable period. The company continues to receive strong feedback on the Isle & Sky pet treats range and is confident of growing demand within this segment as distribution expands. Despite challenging market conditions and higher labor costs, the company's gross margins within the Poultry division remained flat compared to PCP. TasFoods is actively monitoring macroeconomic conditions and remains focused on positioning Nichols Poultry as a highly attractive product for consumers in the affordable-premium Poultry segment. The company aims to deliver an improved and more sustainable financial performance for the Poultry division moving forward.