Oceania Natural shares up 7% despite missed targets

Monday 02 May 2016 04:05 PM

Oceania Natural shares up 7% despite missed targets

By Edwin Mitson

May 2 (BusinessDesk) - Shares in the newly listed food supplements maker Oceania Natural rose 7% in trading today despite failing to meet company targets on revenue, distributor sales, and gross margin.

The company is listed on the NZX's NXT platform, which means it is only required to publish key metrics. Oceania listed on March 31st with 25 percent of shares sold for 64 cents apiece in the first local listing of the year. Shares have since soared and are currently trading at $2.70.

Total revenue at Oceania for the year to March 31 was $3.34 million, below the target of $3.4 million. Sales by third-party distributors were $2.68 million, again below the $2.75 million target while gross margin was 40.1 percent, rather than the aimed for 41 percent. The only milestone reached was in direct sales, where sales of $655,000 were achieved, ahead of a targeted $650,000.

Auckland-based Oceania Natural produces food supplements derived from manuka honey and noni fruit juice. The bulk of its revenue comes from China, where it has distribution deals in various provinces. At the time of listing, these third party distributor sales were expected to deliver the bulk of the company's revenue, rather than direct sales.

(BusinessDesk)

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