Clover Corporation has delivered record FY26 revenue of $97.4 million and a 50% lift in attributable profit, while raising its fully franked final dividend to 1.25 cents per share. The result comes alongside a planned chair transition, with Ian Glasson set to replace retiring chair Rupert Harrington after the 2026 AGM.
- Record FY26 revenue of $97.4 million, up 13%
- Attributable profit after tax rises 49% to $10.458 million
- Final dividend increases to 1.25 cents per share, fully franked
- Inventory investment weighs on operating cash flow
- Ian Glasson selected as incoming chair
Record Revenue Converts Into Sharper Profit Growth
Clover Corporation Limited (ASX:CLV) has turned another strong revenue year into a much larger profit gain, reporting FY26 revenue of $97.4 million and profit after tax attributable to members of $10.458 million. Revenue rose 13% from $86.004 million, while attributable profit increased 49% from $7.015 million. The company’s headline NPAT figure of $10.5 million represents the same result rounded to one decimal place.
The second half supplied the stronger contribution, with revenue of $53.3 million compared with $44.1 million in the first half. Earnings per share increased to 6.26 cents from 4.20 cents, while net tangible asset backing rose to 45.54 cents per share from 42.11 cents.
New Products and Supply Chain Investments Drive the Result
Clover attributed the improvement to demand for newer products, higher-margin ARA powders and better operating performance at Melody Dairies, where production volumes rose and unit costs fell. The company also pointed to its Ecuador crude tuna-oil operation as a source of supply security and competitive pricing.
CholineXcel moved further towards commercialisation during the year, with customer trials under way and intellectual property successfully filed. Clover also expanded work on non-allergenic, higher-fortification and plant-based DHA powders, while developing a strategy for entry into the US nutraceutical market.
That growth has required more cash tied up in the business. Inventories rose to $43.947 million from $24.140 million, while operating cash flow fell to $4.393 million from $8.287 million. Cash at year-end was $7.218 million, down from $8.683 million, although interest-bearing debt was eliminated during the year.
Dividend Rises as Board Prepares for Leadership Change
The board declared a fully franked final dividend of 1.25 cents per share, up from 1.00 cent for FY25 and taking the full-year dividend to 2.25 cents per share after the 1.00-cent interim payment. The dividend is scheduled to be paid on 19 November 2026 to shareholders on the 21 October record date.
The financial result was followed by a planned governance transition. Rupert Harrington will retire from the board at the conclusion of the 2026 Annual General Meeting after joining Clover in 2015 and becoming chair in 2017. Existing director Ian Glasson has been selected as chair and chair of the Nomination Committee, while Toni Brendish will take over the People & Culture Committee chair. Clover is still recruiting a replacement non-executive director, leaving one board appointment unresolved.
FY27 Starts With Revenue Momentum and Further Investment
Clover said it expects first-half FY27 revenue to be ahead of the prior corresponding period, based on current market and global conditions. It also expects significant investment in developing and commercialising new products, so the next test will be whether the newer pipeline can add to revenue without reversing the operating improvement achieved in FY26.
Bottom Line?
Clover enters FY27 with stronger earnings and no interest-bearing debt, but rising inventories, softer operating cash flow and continued product investment will test the quality of its next phase of growth.
Questions in the middle?
- Can CholineXcel progress from customer trials into material commercial revenue?
- Will inventory investment translate into sustained sales and cash conversion in FY27?
- Who will fill the pending non-executive director vacancy after the chair transition?