Why the Keytone Dairy (ASX:KTD) share price opened 23% higher today

The Keytone Dairy Corporation Ltd (ASX: KTD) share price is soaring today after the company's annual revenue report was released.

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The Keytone Dairy Corporation Ltd (ASX: KTD) share price is soaring today after the company released its annual revenue report for the 2021 financial year. Keytone Dairy shares opened 22.86% higher at 21.5 cents before considerably retracing. At the time of writing, the company's shares are trading at 18.5 cents, up 5.71% for the day so far. 

Let's take a closer look at the dairy manufacturer and exporter's results.

Annual revenue results

The Keytone Dairy share price is on the move today after the company released its unaudited results for the year ending 31 March 2021. The results show significant growth in Keytone Dairy's sales and business divisions.

Aside from the growth constraints caused by Australia and New Zealand's bleakest period of the COVID-19 pandemic, the company says its brands have continued to record strong growth.

The company's statutory total sales revenue was up by a whopping 125% compared to the previous period.

According to its statutory results, the year that's been has seen Keytone Dairy rake in $50.7 million in sales revenue. This is an impressive gain when compared to the previous year's $22.5 million revenue.

The company's Australian Contract Manufacturing segment also delivered robust gains. Its statutory results show it brought in $35.2 million in sales revenue, a 109% gain on the sales revenue of the prior year.

Keytone's New Zealand Dairy division earned $11.3 million in sales revenue over the year, an increase of 126% over the previous year.

Finally, the company reported that its brands – including Onmiblend, which was acquired by Keytone Dairy in August 2019 – had a combined statutory income of $4.2 million. That represents an impressive 545% revenue increase on the prior corresponding period.

Commentary from management

Keystone CEO Danny Rotman commented on the company's revenue results. He said:

The record growth across the group over the last twelve months has been extraordinary, particularly given the magnitude of disruption caused by COVID to global logistics and workplace environments. The pandemic caused significant headwinds for further penetration of our own brands and our clients' businesses. Notwithstanding these challenges, the sales growth of the business has outperformed. I am incredibly proud of the way our loyal and dedicated staff have come together to successfully navigate through this unprecedented year and the foundations that have been built as we move into FY22.

Keytone Dairy share price snapshot

Today's news has resulted in a welcome boost for the Keytone Dairy share price, which has had a rough trot on the ASX lately.

Even with today's gains, Keytone Dairy shares are down almost 23% year to date. The company's shares are also down by around 70% over the last 12 months.

Keytone Dairy has a market capitalisation of around $47 million, with approximately 273 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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