The Pure Foods Tasmania Ltd (ASX: PFT) share price is up almost 5.52% at 96 cents in late afternoon trading. The gains come as the wider market is slipping, with the All Ordinaries Index (ASX: XAO) down 0.9% for the day. Indeed, Pure Food's share price gains today place it at the top of the All Ords leader's board… again.
What does Pure Foods do?
Pure Foods Tasmania was formed in 2015 and began trading on the ASX in April 2020.
The company's business strategy is to acquire and develop premium Tasmanian food businesses. Today Pure Foods has acquired two businesses, held through separate wholly owned subsidiaries. Tasmanian Pate, which supplies numerous big brand chains such as Woolworths Group Ltd (ASX: WOW), Aldi and Costco. And Woodbridge, which produces premium Tasmanian smoked salmon and trout.
Why is Pure Foods share price trouncing the ASX returns?
The Tasmanian based seafood and pate specialist has had a stellar 2 months, with the share price up 320% since 24 July.
Pure Food's share price really took off at the beginning of August following the release of its quarterly performance report on July 30. The company showed that it had managed to maintain robust export sales despite facing disruptions from COVID-19 and simmering trade frictions between Australia and China.
In a forward looking statement, Pure Foods forecast it would deliver full year revenue growth of 22% compared to FY19.
Shareholders were again rewarded on 6 August, when Pure Foods announced the launch of 3 of its premium pates into 850 Woolworths stores.
And the good news has kept on coming.
On 9 September, Pure Foods announced it was acquiring the Daly Potato Company for $1.8 million in a mixture of cash and shares. The company grows potatoes in Tasmania and distributes its potato salads to supermarket chains across Australia.
Pure Foods managing director Michael Cooper called it a great opportunity for the company's shareholders saying, it cemented the company strategy of "moving into new categories".
He added: "Meal solutions is a $1 billion market in Australia alone and we also see a large opportunity to support our Asian customers with unique 100% Tasmanian-based meal solutions."
At the current price of 96 cents per share, Pure Foods has a market cap of $46.8 million.
