The Forbidden Foods Limited (ASX: FFF) share price has had a sensational first day on the ASX boards.
Earlier today the premium food, beverage, and ingredients company's shares were trading as high as 40 cents.
When the Forbidden Foods share price hit this level, it meant they had doubled in value from their IPO price of 20 cents.
At the time of writing, the company's shares are fetching 36 cents, up 80% on their listing price.
What is Forbidden Foods?
Forbidden Foods has a focus on the baby food, wellness, and organic markets, with diverse national and international sales channels.
It was established in 2010 with a vision to provide Australia with the very best health foods and to meet growing consumer demand for differentiated, plant-based, and health-oriented products.
The company's products are stocked by the likes of Costco, Metcash Limited (ASX: MTS), and Woolworths Group Ltd (ASX: WOW).
It generated modest growth in FY 2019, with revenue coming in at $3.43 million, up from $3.37 million in FY 2018. Both years the company recorded losses: $192,500 in FY 2019 and $263,098 in FY 2018.
Positively, things were better for its top line during the first half of FY 2020, with Forbidden Foods recording revenue of $2.14 million. This was up almost 13% on the prior corresponding period. However, it continues to operate at a loss and posted a loss after tax of $0.54 million for the half.
What about the future?
According to its prospectus, management expects to grow its revenue to $4.1 million in FY 2020. This will be an increase of 19.5% year on year.
However, due to the pandemic, it isn't able to provide forecasts further out from here.
Nevertheless, Forbidden Foods' co-founder and CEO, Marcus Brown, remains positive on the future.
He said: "There is much to be excited about in the near future for Forbidden Foods. We aim to launch new innovative product lines, deepen our existing market penetration and broaden our international focus. We expect the demand for healthy 'better for you' and plant-based food products to only increase, and we believe Forbidden Foods is well placed to establish and grow market share in our targeted sectors of the food and beverage industry."
The company notes that it operates at the nexus of two growth segments in food – Plant-Based Foods and Baby Foods.
These are currently worth US$20 billion and US$214 billion globally per annum, respectively, and are growing at a solid rate.
