Why the Keytone Dairy (ASX:KTD) share price is lifting today

The Keytone Dairy Corporation (ASX: KTD) share price has broken its downward trend to lift 7% in early-afternoon trade. Here's why.

The Keytone Dairy Corporation Ltd (ASX: KTD) share price has broken its downward trend to lift in early-afternoon trade.

This follows the dairy manufacturer's update on sales and purchase orders received from Walmart (China) Investment Co.

At the time of writing, the Keytone share price is swapping hands for 13.5 cents a pop, up 3.8%.

wide eyed girl next to glass of milk

Image source: Getty Images

Sales accelerate

Investors are buying up positions in Keytone shares after the company recorded strong sales for 2021.

In its release, Keytone advised sales and forward orders have topped NZ$3.3 million from Walmart China. This represents a three-fold increase for the first five months of 2021 when compared to this time last year.

The company attributed the robust performance to its whole and skim milk powder for Sam's Club China. The popular product has been a hit with Chinese consumers due to the company's strategic partnerships and accredited facilities.

In addition, the company has booked NZ$1.4 million of further orders to be delivered in the third quarter of 2021.

Keytone CEO, Danny Rotman touched on the company's progress, saying:

Our international track record, strategic partnerships and growth in powdered dairy continues, underpinned by our fully licensed and accredited facilities in New Zealand. The strong growth is testament to the efficiency and quality of our facilities and team in New Zealand.

We are continually seeking new business opportunities with our existing clients, forging new relationships with others and will update the market with new material contract wins and forward orders as they come to hand.

About the Keytone share price

Today's gain will be a relief to shareholders, as the Keytone share price has halved in value over the past 12 months. Shares in the company have also fared poorly in year-to-date performance, down more than 40%.

Based on valuation grounds, Keytone presides a market capitalisation of roughly $38 million, with approximately 273 million shares on issue.

Motley Fool contributor Aaron Teboneras 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.

More on Consumer Staples & Discretionary Shares

Woman using smartphone to check product details while shopping in a grocery store aisle.
Record Highs

Woolworths shares jump 9% to all-time high: Buy, sell, or hold?

Here's what the experts tip next.

Read more »

Three cows jumping over a field of grass.
Consumer Staples & Discretionary Shares

A2 Milk vs Bega Cheese: Which ASX dairy stock is better for new investors?

Which company edges ahead thanks to fully franked dividends and recent share price momentum?

Read more »

A man in a four wheel drive vehicle lifts an arm and gives a thumbs up in the air as he traverses rugged mountain style terrain with a green valley and rocky hills in the background.
Consumer Staples & Discretionary Shares

ARB posts profit and sales drop but holds dividend steady

ARB reveals lower FY26 revenue and profit but keeps dividend steady, focusing on new store growth and international expansion.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Consumer Staples & Discretionary Shares

3 reasons I would invest $10,000 in Coles shares

Defensive demand is only one reason this ASX share remains high on my buy list.

Read more »

Woman thinking in a supermarket.
Consumer Staples & Discretionary Shares

Buying Coles shares? Here's the dividend yield you'll get today

Coles has impressed dividend investors with its income growth.

Read more »

Hand sketching investment growth concept chart with chalk on blackboard.
Consumer Staples & Discretionary Shares

Temple & Webster vs Harvey Norman: Which beaten-down ASX retailer offers better value?

Temple & Webster vs Harvey Norman—here's which value investors might want to back after a tough year for retail shares.

Read more »

A young woman looks happily at her phone in one hand with a selection of retail shopping bags in her other hand.
Consumer Staples & Discretionary Shares

Woolworths vs JB Hi-Fi: Which ASX shares to buy now?

Which is the better buy right now: Woolworths’ steady staples or JB Hi-Fi’s value and yield? Here’s my verdict for…

Read more »

Woman holding several shopping bags.
Consumer Staples & Discretionary Shares

Super Retail Group vs JB Hi-Fi: Which retail stock is better for beginners?

Which comes out on top for beginners: Super Retail Group or JB Hi-Fi? We crunch the numbers and explain my…

Read more »