CLV - Clover Corporation

i hold CLV ( theoretical av. just above 24.5 cents , but 'free-carried ' )

was buying in 2014 and 2015 ( lowest buy 17 cents ) and reducing in late 2015, and again in 2018 ( highest sale $1.55 )

is currently sitting in 'the bottom drawer '



the div. yield is nothing special ( most years ) but i have no investment cash at risk either

until it drops close to 30 cents again , i probably won't be adding extras

Clover announces a record result for 1H23
- Growth in revenue with new customers and products
• Net Sales Revenue in 1H FY2023 of $44.4m (1H 2022: $29.7m) an increase of 49.5%.
• Net Profit after Tax 1H FY2023 $3.6m (1H 2022: $2.0m) an increase of 81.1%
• New customers and products delivering growth.
• Clover declares dividend of 0.75 cent per share.
Clover Corporation Ltd (ASX: CLV) today released its results for the half year ended 31 January 2023.
Net Sales Revenue for the half year was $44.4 million (2022: $29.7 million), an increase of 49.5% on
the prior year. Increased volume and improved trading conditions have delivered an improved Net
Profit after Tax for the half year to 31 January 2023 of $3.6 million (2023: $2.0 million), an increase
of 81.1%.
The Company has grown revenue in the Europe & Middle East 76%, Asia 36% and ANZ 76% with new
customers in infant formula and food applications, further diversifying the customer base.
Clover has stabilised its gross margin position by managing supply chain inputs and price positions
under increasing price inflation across people, raw materials and freight.
Clover’s first half revenue has been strengthened by winning new customers and existing customers
building inventory in preparation for the new China GB standard. The China GB Standard requires
infant formula manufacturers to hold a license to sell through the Chinese retail stores from late
February 2023. Product manufactured prior to the February deadline can still be sold. Many
manufacturers are in the process of achieving a licence and therefore have built inventory to
maintain sales during this period.
The Chinese GB standard requires infant formula manufacturers to fortify their product for China
retail sales with a minimum of 15mgDHA/100Kcal. Currently most manufacturers use 5mg to 10 mg
of DHA. Clover has supported manufacturers in qualifying formulations and submitting license
applications over the past three years. Clover’s unique Driphorm microencapsulated powder allows
customers to achieve a higher DHA loading without sensory issues. Whilst the Chinese retail market
requires a GB license, the cross-border or grey market which does not require a license has
strengthened as the impacts of COVID-19 have reduced. Our customers have been able to navigate
new channels to access this market further improving overall demand.
As customers work through their inventory build and await their GB license we expect volatility in
demand in the second half.
During the half year, Clover implemented modifications to the Melody Dairies (NZ) spray dryer in
Hamilton which has improved productivity in the manufacture of Clover’s products. The outlook for
the second half will further improve utilisation and to operate around breakeven. Melody Dairies
continues to be a key strategic investment providing diversified manufacturing capacity at low cost.
The Company has launched new products which have achieved sales in the half. Clover’s Gelphorm,
an emulsion Omega 3 product capable of fortifying UHT products has received its first sales in the
USA, whilst other potential customers have the product on trial.
Clover’s new product pipeline includes a new proprietary encapsulation technology. Other projects
targeting new markets and applications include the microencapsulation of high value bioactive’s;
probiotics, choline, CoQ10 and folic acid.
Clover announced the successful outcome of the clinical trial with preterm infants and the
introduction of a new product called Premneo, targeted to sell via hospital pharmacies. Globally,
there are ~2.5m babies born preterm (less than 32 weeks), potentially requiring 300m to 400m
doses annually. Our expectations are that meaningful revenue generation may take 18-36 months
with requirement for regulatory registrations, and the establishment of manufacturing and
distribution capability.
These proprietary innovations have potential to add significant growth in the medium term. To date
this has been funded from operational cash flows. As the projects advance, they will require
continued investment in R&D and market development.
Dividend
Based on the company’s cash position Directors have decided to declare a fully franked final
dividend for 1H FY23 of 0.75 cent per share. Relevant dates for the dividend are as follows.
Ex-dividend Date: Wednesday 5 April 2023
Record Date: Thursday 6 April 2023
Payment Date: Thursday 27 April 2023
Looking forward
With market opportunities improving, Clover expects full year revenues for FY23 to be in the range
of $80m to $90m. The Company remains cautious on full year revenue guidance with ongoing
COVID-19 infections, geo-political issues effecting freight and supply and the outcome of the
introduction of the Chinese infant formula GB license potential to impact customer demand.


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DYOR

i hold CLV (' free-carried' ) ( av. SP 24.5c )

Traded EX div this week and hit a 6 year share price low, looks to be an opportunity as the business is strong, they have cash, low debt, record revenue, pays dividends, growth industry. Lots of cheap stocks at the moment but this is a bit of a stand out.
~

Clover Corpora�on announces Omega 3 sourcing integra�on with new facili�es in Ecuador.

Melbourne, Australia – July 31, 2024

Clover, a developer of high value added nutri�onal solu�ons to improve human health with many of its products containing Fish oil to deliver Omega 3 solu�ons, is pleased to announcethe establishment of its new division in Ecuador.

This strategic ini�a�ve aims to secure acri�cal supply chain input for Clover’s products and enhance its posi�on in the industry.

Key Highlights:
1. Ecuador Facility:
The state-of-the-art facility in Ecuador has been under construc�onfor the past twelve months and recently commenced produc�on. Situated in a major fishing port, it is uniquely posi�oned to source and extract fish oil efficiently.
2. Supply Chain Integra�on:
Clover’s decision to ver�cally integrate into the supplychain is driven by supply chain challenges during the pandemic, evolving global events, heightened government regula�ons, and intensified market compe��on.
By establishing its own extrac�on capabili�es, Clover ensures a reliable supply of high quality fish oil.
3. Omega-3 Benefits:
Fish oils, rich in omega-3 faty acids, play a crucial role in human health.
Specifically, docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA)support brain development, heart health, and immune func�on.
4. Cell Membrane Support:
Omega-3s are integral to cell membranes, facilita�ng intercellular communica�on. DHA, concentrated in the re�na, aids vision and prevents age-related macular degenera�on. Growing awareness of these applica�ons provides Clover with new market applica�ons.
5. Microencapsula�on Exper�se:
Clover currently refines and micro-encapsulates fish oils in its Australian and New Zealand facili�es.
These oils are used to for�fy infant formula, pharmaceu�cals, nutraceu�cals, and food products.
6. Sustainable Sourcing:
At the Ecuadorian facility, oil is extracted from fish heads—o�en discarded by canning opera�ons.
The extracted oil from these heads undergoes refining and micro-encapsula�on, while the by-product, fish meal, is sold as high-value stock feed. Ecuador falls within the jurisdic�on of the Inter-American Tropical Tuna Commission (IATTC), the regional fisheries management organiza�on responsible for tuna conserva�on and management.

The IATTC oversees the highly regulated fishing zone from which Ecuador sources its catch, ensuring compliance with EU standards and dolphin-free prac�ces.

7. Strategic Impact:
Clover expects the Ecuador facility to meet up to 50% of its current oil requirements, providing cost savings and an expected �mely return on capital.

Clover remains commited to flexibility, quality, and sustainability as it strengthens its posi�on in the global fish oil market. Investors and stakeholders can an�cipate posi�ve impacts on Clover’s bottom line as the Ecuador facility contributes to its growth trajectory.

For further information, please contact:
Mr Rupert Harrington – Chairman, Clover Corporation +61 3 8347 5000

i hold CLV (' free-carried' ) ( av. SP 24.5c )

am guessing those pesky question marks translate to 'ti'

Clover Corporation Unveils Groundbreaking Powder Delivery System for Choline

Melbourne, Australia, 11 September 2024 —

Clover Corporation proudly announces its latest innovation: a cutting-edge Powder Delivery system designed specifically for the essential nutrient Choline.

Choline plays a critical role in foetal and infant development, particularly in-brain health.Key Highlights:
• Choline’s Importance:
Choline is a vital nutrient found in human milk, supporting synapse formation, cellular membranes, and the production of acetylcholine—a neurotransmitter crucial for memory and muscle control.
• Infant Formulas: Most infant formulas now include choline, alongside other essential nutrients like docosahexaenoic acid (DHA) and lutein, synergistically promoting brain development
.• Clover’s Breakthrough:
Clover’s Choline Powder Delivery System addresses manufacturing challenges associated with handling this hygroscopic compound.

Achieving uniform distribution within dry-blended powdered drink mixes ensures product quality and nutritional consistency.
• Hygiene and Stability:
Clover’s Choline Powder simplifies hygienic processing andaddresses the critical factor of choline’s stability in the powdered drink matrix.
• Market Insights: The mother and baby segment for Choline is projected to reach US$146 million in 2024, with a compound annual growth rate (CAGR) of 6%1..

Regulatory changes in the EU and China have elevated Choline’s importance in infant formula.
• Beyond Nutrition: Choline’s applications extend beyond human nutrition - stock feed and mining markets stand to benefit from Clover’s Choline Powder Delivery System product, providing access to the total Choline market valued at US$488 million (2024)1
.• Years in Development:
Clover’s solution emerged after an eight-year collaboration with customers and manufacturers.
A provisional patent has been filed which paves the way for commercial manufacturing and customer application trials.
• Customer Demand:
Initial discussions reveal strong interest in Clover’s product, as existing challenges impact manufacturing efficiency.
Clover expects to enter trials with strategic customers at the start of the FY25 with commercial sales expected in FY26 after stability, compatibility and shelf-life testing is complete.

i hold CLV ( theoretical av. just above 24.5 cents , but 'free-carried ' )

Clover Corporation Reports Improved second half result for FY24 Results for the year ended 31 July 2024

Clover Corporation, a leading provider of innovative nutritional ingredients, is pleased to share its financial results for the fiscal year 2024 (FY24).

Despite facing a challenging year in the global food and infant formula markets, the company saw an improved performance in the second half of the year.
• Net Sales Revenue in FY24 of $62.2m in line with guidance (FY23: $79.9m)
• Net Profit after Tax FY24 $1.5m (FY23: $6.2m)
• The second half delivered revenue of $34.9m (1H $27.3m) an increase of 28% on the1HFY24 and NPAT $2.1m 2H FY24 (1H NPAT -$0.6m)
• Improved performance in Melody Dairies under new management
• The Ecuador facility was successfully commission on time and on budget
• The R&D team continues to focus on commercialising new products, including the recently announced Powdered Choline product
• Clover declares dividend of 0.75 cent per share

Second Half Performance:

The latter half of FY24 experienced improved demand, driven by increased sales in China,New Zealand, and Asia.

Infant formula manufacturer’s recovered and customers have transitioned from trials to commercialisation.
Despite facing inflationary pressures, freight issues, and competitive pricing, Clover was able to focus on new customers and applications,supporting future gross margins.Strategic Developments:
• Ecuador Fish Oil Facility:
The newly established fish oil extraction facility in Ecuador is now operational, supplying fish oil to Australia for refining.
This facility enhances Clover’s vertical integration, ensuring supply, quality, and cost efficiency.

Fish oil constitutes 50% of Clover’s cost of goods, and this facility will help manage costs and expand into fish meal and fish oil markets.
All the fish sourced are managed within the IATTC (Inter American Tropical Tuna Commission) guidelines which follows EU standards of responsible sourcing.

• Powdered Choline Product: Having now successfully completed a series of trials,moving from the laboratory to scaled production, the Company has filed for IP for a unique Choline powder.
The benefit to potential customers is that the unique free-flowing powder removes manual handling and production challenges. Choline is essential for lipid deposition in the human body and is a specified ingredient in infant formula and used in prenatal products.
• Premneo Product Commercialisation:
EU and ANZ regulators require a safety data study to consider our regulatory application.

This study is now completed and is under expert review.

Clover is confident that the conclusions will pave the way for regulatory approvals.

Clover expanded its stake in Melody Dairies (NZ) from 41.9% to 43.9% during FY24.

Changes in the shareholding further aligns the focus on maximising usage of the facility.
On completing the shareholder changes, Clover and SpringSheep installed a new management team with the factory achieving a small profit in the last quarter.

Commenting on the FY24 results, Peter Davey, Managing Director at Clover Corporation,stated, “We faced significant challenges in the first half, but the second half showed a remarkable turnaround with normalised customer demand. The establishment of the Ecuador facility and the improved performance of Melody are crucial steps in our vertical integration strategy.

The Choline product will open new markets for Clover.”

Dividend:Based on the Company’s underlying performance and cash position, the Directors have declared a fully franked final dividend for FY24 of 0.75 cent per share.

Relevant dates for the dividend are as follows:
• Ex-dividend Date: Monday, 21 October 2024
• Record Date: Tuesday, 22 October 2024
• Payment Date: Monday, 18 November 2024

Looking Ahead:As we move into FY25, Clover aims to build on the demand profile achieved in the last quarter.
Diversification remains a core focus with our powders being used in the nutraceutical markets in addition to major long-term projects including Gelphorm and Premneo providing a channel for growth outside the infant formula market. At the same time the ability to extend our offering with existing infant formula customers using our unique powdered Choline product is exciting.

For further information, please contact:

Mr Rupert Harrington – Chairman, Clover Corporation +61 3 8347 5000

Mr Peter Davey – MD & CEO, Clover Corporation +61 3 8347 5000

i hold CLV ( theoretical av. just above 24.5 cents , but 'free-carried ' )