Short Term Trading Week Starting 22 May, page-4

STTCOMP JAT FA LONG

Mkt $32.5m

SOI 2.1bil

1. Jatcorp achieved a quarterly net profit of approximately $241K and EBITDA of $886K, marking financial improvements in the recent quarter.
2. Total revenue for the March quarter was $11.3m, a 31.5% increase from the December quarter, although there was a decrease of 5.4% compared to the prior corresponding period.
3. Gross profit for the March quarter was $4.05m, marking a 22% increase from the December quarter and an impressive 85.8% increase from the prior corresponding period.
4. Jatcorp continued to improve operations and brand building, resulting in better financial returns. The legal proceeding against Sunnya's prior directors continues, boosting confidence in the business's recovery.(16mil+ AUD)
5. ANMA's factory has improved efficiency and reduced production cost by investing in new machinery, upgrading the production line, and implementing a new inventory management system.
6. JAT signed a new supply agreement with BTNature to manufacture $28m worth of milk powder products over the next 12 months.
7. The management has boosted brand development and expansion in the March quarter with various initiatives such as participating in exhibitions, opening flagship stores, and securing agreements with online retail groups.
8. Legal proceedings are ongoing against former directors of its subsidiary, Sunnya Pty Ltd, with several asset preservation orders made by the Supreme Court of NSW.
9. In the business outlook for Q4 FY2023, Jatcorp is cautiously optimistic about business prospects and performance. The company has decided to temporarily suspend supply of "Neurio" branded products to China due to trademark infringement and counterfeit goods issues, switching to the "Moroka" brand for sales in that market.
10. Expenditures for Q3 FY2023 included $8.226m on inventory and manufacturing, $666k on advertising and marketing, $97k on leasing, $979k on employees, $75k on interest, and $1.525m on administration and corporate costs. These increases were mainly due to additional purchases of raw materials and legal fees.
11. Jatcorp announced the disposal of the 50% owned subsidiaries KTPD Holding Pty Ltd and Green Forest International Pty Ltd due to underperforming operations.
12. The payments made to related parties and their associates totalled $197K for the quarter, mainly for Directors' remuneration and consulting fees