Clover Corporation posted a robust 38% revenue increase to $86 million in FY25, driven by product innovation and operational gains, while declaring a final dividend. The company’s cautious outlook for FY26 reflects ongoing regulatory and production challenges.
- 38% revenue growth to $86 million in FY25
- Net profit after tax rises to $7 million from $1.5 million
- Record second-half revenue of $48.4 million
- Operational improvements at Melody Dairies and Ecuador facility
- Final dividend declared at 1 cent per share
Strong Financial Turnaround
Clover Corporation Limited has delivered a striking turnaround in its fiscal year 2025 results, with net sales revenue climbing 38% to $86 million, up from $62.2 million the previous year. This growth was mirrored in profitability, with net profit after tax jumping to $7 million from just $1.5 million in FY24. The company’s second half alone generated $48.4 million in revenue, setting a new company record and underscoring strong seasonal demand.
Drivers of Growth
The surge in revenue and profit was underpinned by the success of newer product lines that contributed to improved gross margins. Operational efficiencies also played a key role, particularly at Melody Dairies in New Zealand, which achieved higher production volumes and reduced unit costs. Meanwhile, Clover’s Ecuador crude tuna oil facility ramped up to 60% capacity, becoming a significant supplier in a constrained market.
CEO Peter Davey highlighted the company’s disciplined execution and broadened product offering as critical to attracting new customers across Asia and Europe. The company’s strategic expansion of its distribution model, appointing dedicated distributors in key markets such as North America, Asia, and Europe, is already enhancing its market reach and positioning Clover for future growth.
Strategic Developments and Challenges Ahead
Clover continues to invest in its product pipeline, with ongoing trials for Powdered CholineXcel aimed at scaling commercial production through FY26. Regulatory reviews for the Premneo product in the EU and Australia/New Zealand remain underway, reflecting the cautious pace of product commercialisation. Additionally, extended shelf-life testing for probiotics is progressing, signaling the company’s commitment to innovation despite regulatory complexities.
Financial Health and Dividend
Strong cash flow generation and effective working capital management have enabled Clover to reduce debt significantly over the past year. This improved balance sheet provides the company with flexibility to invest in product development, market expansion, and talent acquisition. Reflecting confidence in its financial position, Clover declared a fully franked final dividend of 1 cent per share, payable in November 2025.
Outlook
Looking ahead, Clover’s board expects the first half of FY26 to perform in line with the same period last year, signaling a cautious but stable outlook amid ongoing global market uncertainties. Investors will be watching closely how the company navigates regulatory approvals and scales production of its innovative products to sustain momentum.
Bottom Line?
Clover’s FY25 rebound sets a solid foundation, but regulatory and production hurdles will test its growth trajectory in FY26.
Questions in the middle?
- When will Powdered CholineXcel achieve commercial production scale?
- What is the timeline for regulatory approval of Premneo products in key markets?
- How will expanded distribution impact revenue growth in North America and Europe?