Wide Open Agriculture posts strong revenue growth on oat milk sales as lupin technology advances
Regenerative food and farming business Wide Open Agriculture (ASX: WOA) has announced another consecutive quarter of revenue growth, largely driven by increased sales of oat milk products in Australia and Singapore.
The company today reported revenue of $2.3 million for the second quarter of FY2022, up 36% on the first quarter and 132% year-on-year.
Over the quarter, sales of the company’s oat milk products more than doubled sequentially, with the product now being available in more than 500 retail and café locations globally.
The company said revenue growth was also attributed to the continued growth in its Dirty Clean Food regenerative food brand in Western Australia.
Lupin protein development
Other highlights of the quarter include progress made in the company’s patent application for its lupin protein technology. In December it received an international preliminary report on patentability, which has deemed its technology ‘novel and inventive’.
Wide Open Agriculture is also advancing development of its lupin pilot plant with all key equipment ordered and being shipped to its distribution centre in Kewdale, WA.
The process flow has been confirmed from milling to final dry powder production and packaging with the first tranche of equipment received.
A supply agreement with a leading regenerative farmer is also confirmed and sufficient lupins have been purchased and safely stored for use in the pilot facility.
In recent months, Dirty Clean Food has focused its selling and marketing efforts on expanding its distribution opportunities for its oat milk and retail products.
Earlier this month, Wide Open Agriculture announced a three-year exclusive deal with Metro Alliance to sell all flavours of its OatUP product in Hong Kong and Macau.
This deal followed distribution agreements secured in the second quarter with Woolworths (ASX: WOW) in Australia, GrowHub in Singapore and MKMI in Saudi Arabia, Kuwait and the United Arab Emirates.
In its quarterly report, the company said it expects continued sales momentum across 2022 as the new partners come online including initial orders for Woolworths and Metro Alliance in Hong Kong.
“The company continues discussions to expand into other regions, with new markets expected to be announced in coming months,” it stated.
OatUP flavoured products
Dirty Clean Food has completed initial production of chocolate and coffee flavoured 1-litre Oat Milk with initial sales in Australia and Singapore expected to commence in this current third quarter.
It has also completed a soft launch of its canned Cold Brew in select Perth outlets and has increased production to begin a national launch following positive feedback.
At the end of December 2021, Wide Open Agriculture reported a cash position of $26.2 million and declared it was adequately funded to continue its current activities.