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BESTON Global Food Company (ASX: BFC) has posted an underlying net profit of $1.7 million, although the bottom-line result slumped to a $1.1 million loss due to capital raising and IPO costs.
The Adelaide-based company, which listed last August following a $100 million capital raising, remained upbeat as it delivered its maiden earnings report that was built on group revenue of $7.6 million.
Chairman Roger Sexton says Beston is a business 'ín growth mode' with solid foundations in place to deliver on its goal of becoming a global food company.
However, the result led to a sharp slide in Beston's shares during early trading today, with the stock hitting a low of 35c , or nearly 25 per cent, before settling just 8.6 per cent lower at 42.5c.
Sexton says, despite low profit margins, the company is in a stronger position for future growth as expenses associated with the initial floating period diminish.
"The net result of our activities over the few months as a listed company is that we have put in place some very solid foundations to take BFC forward," he says.
"We are investing for growth, and we are acquiring for growth on our journey to become a global food company."
According to CEO Sean Ebert, Beston's balance sheet is in the black with a number of high quality assets to its name and cash reserves sitting at a comfortable $34.45 million.
Ebert has echoed the sentiment that the company's focus in the second half is to improve profit margins and build solid revenue through all its operational businesses.
"This includes new products and new alliances and distribution arrangements, as well as the generation of new revenue streams based around the BFC patented OZIRIS food safety technology," he says.
Highlights for Beston during the half-year included exceeding production targets for cheese and whey powder, launching a new allergen-free line of ready-to-eat meals and a lobster production increase 197 per cent.
The company also launched the OZIRIS food safety app, allowing consumers to trace and authenticate the origin of all Beston products.
No interim dividend has been declared.
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