Thx for that. It can be confirmed by this:...

Thx for that. It can be confirmed by this:

https://ethicalequities.com.au/2013/09/30/should-i-buy-clover-corporation-asx-clv/

Should I buy Clover Corporation? (ASX: CLV)

Posted by Claude Walker on Monday, September 30, 2013 · 10 Comments

Clover Corporation (ASX: CLV) owns technology that allows them to turn fish oil into a power. Fish oil is a well-known source of Omega-3 which plays a crucial role in brain function. It is normally contained in breast milk and is included in baby formula, and that’s where Clover comes in. 67% of Sales are into Oceania, and that’s where the growth is. The company has two divisions. One is responsible for product innovation, the other, Nu-Mega Ingredients, is responsible for commercializing the products. Note: See this edit regarding the ethics of this company.

R&D spending is likely to be higher in FY2014, and the company faces ongoing margin pressures. Sales will need to continue to grow over the next few years to maintain profits. However, management have been instrumental in drawing attention to this risk, and have not been idle. Gross margins remain well above 30%.

More than a decade ago the company patented several processes known as micro-encapsulation which coated the tuna oil with dairy proteins and thus prevented the oil from exposure to air and subsequent oxidation. The stable product is a free-flowing powder and is known as Driphorm.

A major customer is Nutricia, manufacturers of Karicare infant formula. Clover also supplies Heinz. In February the company announced the renewal, for 5 years, of a supply arrangement that was almost certainly with one of these two companies.