Australian Dairy Nutritionals Surges with 801% Growth in Nutritional Powders
Australian Dairy Nutritionals Limited has reported a record-breaking quarter with total revenue soaring 119% year-on-year, driven by an 801% jump in nutritional powder sales and expanded distribution in China.
- Record $1.9m nutritional powder sales, up 801% year-on-year
- Total quarterly revenue of $2.8m, a 119% increase from prior year
- Production ramp-up with 40,000 tins canned in June at Camperdown facility
- Expanded Future brand distribution to three Chinese provinces
- Net cash outflow reduced to $328k with $2.7m cash on hand and $1.22m funding facility
Strong Revenue Growth Driven by Nutritional Powders
Australian Dairy Nutritionals Limited (ASX – AHF) has delivered a standout performance in the quarter ended 30 June 2025, reporting total revenue of $2.8 million. This marks a 119% increase compared to the same period last year, with nutritional powder sales leading the charge at $1.9 million; an extraordinary 801% surge year-on-year and a 163% rise from the previous quarter.
This remarkable growth is largely attributed to the successful launch and expansion of the Future brand in China, where the company has broadened its distribution footprint to three provinces. The company’s strategic focus on the Chinese market, leveraging the M2C global shopping app, appears to be gaining strong traction, supported by pipeline and replenishment orders.
Production Capacity and Operational Momentum
Production at the Camperdown facility in Victoria is scaling rapidly to meet demand. In May, the plant produced a record 24 tonnes of product, and in June alone, 40,000 tins were canned; surpassing the entire FY24 annual output of 35,000 tins. This increase in plant utilisation underscores the company’s operational momentum and its transition towards becoming a significant infant formula exporter.
Adding to the product portfolio, Australian Dairy Nutritionals commenced production and sales of Sprout Organics in June 2025, a complementary offering expected to further enhance plant utilisation and revenue streams.
Financial Position and Funding
Despite the rapid growth, the company maintained disciplined cash management. Net cash outflows from operations were $328,000 for the quarter, significantly improved from $1.15 million in the prior quarter. Cash reserves stood at $2.7 million at quarter-end, down slightly from $3.1 million, but the company retains access to a $1.22 million secured loan facility with Gippsreal Limited, providing additional financial flexibility.
Director remuneration remained consistent at $79,000 for the quarter, reflecting stable governance costs amid expansion.
Looking Ahead
The board expressed confidence in sustaining sales and production momentum into the next quarter, with plans to continue expanding distribution across additional Chinese provinces throughout FY26. The company’s vertically integrated model, combining organic dairy farms and a dedicated processing facility, positions it well to capitalize on growing demand for premium infant formula products, particularly in Asia.
While the forward-looking statements are unaudited and subject to market risks, the current trajectory suggests Australian Dairy Nutritionals is on track to reshape its business profile significantly.
Bottom Line?
With record sales and expanding China presence, Australian Dairy Nutritionals is poised for continued growth but must sustain momentum amid competitive pressures.
Questions in the middle?
- How will Australian Dairy Nutritionals manage supply chain and production scaling to meet growing demand?
- What is the timeline and strategy for further geographic expansion within China and other Asian markets?
- How will the introduction of Sprout Organics impact overall revenue and profitability in the coming quarters?
