Wide Open Agriculture achieves 12 consecutive quarters of revenue growth

Wide Open Agriculture (ASX: WOA) has continued its record growth, with managing director Dr Ben Cole describing the June quarter (Q4 FY2022) as a “watershed” period for the company.

For Q4 FY2022, Wide Open revealed it had generated almost $2.7 million in revenue – 3% higher than Q3 FY2022, which brought in $2.6 million, and an increase of 88% on Q4 FY2021.

Dr Cole noted Q4 FY2022 had been the company’s 12th consecutive quarter of growth.

For the entire FY2022, revenue was almost $9.3 million – up 115% on FY2021’s figure of $4.3 million.

The upward momentum is expected to continue in FY2023 as Wide Open accelerates its retail and market expansion activities.

Dirty Clean Food

Underpinning Wide Open’s revenue is its Dirty Clean Food brand, which markets and sells regeneratively farmed and sustainable food, including its own carbon neutral oat milk.

Dirty Clean Food chief executive officer Jay Albany said the brand had an “incredible” FY2022.

“Performance was strong across all channels as our customers value the taste, health, and environmental benefits of regenerative produce.”

“Looking ahead, we are focused on expanding our brand presence with national retail and global distribution partners.”

The products are available online, through food service and wholesale, and at a variety of retail stores including IGA, Woolworths, and The Good Grocer.

Oat milk

The group’s regeneratively farmed and carbon neutral oat milk was available at 1,500 global and retail locations by the end of Q4 FY2022.

This compares to just 300 locations in Q1 FY2022.

By the end of Q4 FY2022, Woolworths (ASX: WOW) had the oat milk stocked at 650 store locations – up from 500.

During Q4 FY2022, the group launched its chocolate, coffee, and barista oat milk products.

A new distribution agreement was collared with DKSH Taiwan in May – enabling Dirty Clean Food oat milk to be sold in the country.

This follows distribution deals to sell the products in Hong Kong and Macau, Singapore and the Middle East.

To roll-out the products further in Australia, a national advertising campaign has begun.

Wide Open’s strategy is to produce its oat milk in Western Australia, with the final design and details for the facility expected in Q1 FY2023.

Lupin protein

In addition to developing an oat milk range, the company has created Buntine Protein using its proprietary technology.

The protein is made from WA regeneratively farmed sweet lupins and is designed to be used as a key ingredient in plant-based food and beverages.

A pilot production facility for manufacturing the protein was opened in WA during Q4 FY2022.

At the plant’s official opening last month, Wide Open also revealed it had secured an offtake agreement with owner of Nudie, Black Swan and Peckish food and beverage brands Monde Nissin Australia.

Monde has agreed to purchase up to 60% of the lupin protein produced at the plant over two years.

Initial revenue from this deal is expected in Q1 FY2023.

Negotiations are also underway with three other potential offtake customers in Europe, China and South East Asia.

Wide Open has engaged a consulting firm to complete a concept study for a 10,000 tonne per annum commercial plant to produce the Buntine Protein.

In the coming months, Dirty Clean Food plans to launch an oat milk containing Buntine Protein.

The protein will also be unveiled in September at South East Asia’ largest food and beverage conference.

To fund its ongoing expansion plans, Wide Open had $19.7 million in the bank at the end of Q4 FY2022.