Clover Corporation Positions for Continued Growth Following Solid FY25 Performance

High-value nutritional solutions manufacturer Clover Corporation (ASX: CLV) has reported a turnaround in performance for FY2025, underpinned by expansion in Europe and Asia across the nutraceutical, food & beverage, and infant formula sectors.

The company recorded a 38% boost in revenue to $48.4 million from $37.6m in the previous corresponding period, while net sales revenue increased to $86m from $62.2m.

Net profit after tax hit $7m (compared to the previous year’s $1.5 million), driven by new customers and higher order volumes from existing clients.

Improved Margin Performance

Margin improvements came through product innovation, cost efficiencies, and sourcing benefits from Clover’s fish oil facility in Ecuador and the Melody Dairies supply facility in New Zealand.

Crude tuna oil extraction delivered strong yield and quality year-round, providing a secure and cost-effective supply of critical raw materials in a tight market.

Clover imports the oil to its Melbourne refinery for processing into high-quality, food-grade Omega-3 DHA (docosahexaenoic acid) and ARA (arachidonic acid) powders for use in infant formulas and other nutritional products.

At Melody Dairies (where Clover retains a 43.9% stake), improved plant use and higher production volumes from increased silo capacity lowered unit costs and strengthened profitability.

Clover’s operating expenses rose during the period, primarily from regulatory compliance and strategic hires in research, development, and quality assurance to support new products  such as CholineXcel, Premneo.

Disciplined Core Execution

Clover chief executive officer Peter Davey said the positive performance would allow the company to continue focusing on investment in product, market and talent development.

“Our results are reflected in our management team’s disciplined execution of our core business while servicing new customers with a broader product offering and new product launches across Asia and Europe,” he said.

Clover has appointed dedicated distributors across key markets to manage marketing, inventory, and warehousing.

“A broader distribution model is a key plank in our growth strategy—this approach is already expanding our reach in North America, Asia, and Europe, and will be central to driving future growth,” Mr Davey said

The company said it would use the strong cash generation from sales and working capital management to pay down debt from the past 12 months.