The Pure Foods Tasmania Ltd (ASX: PFT) The stock price is up nearly 5.52% to 96 cents by late afternoon. Gains come as the broader market slips, with the Index of all ordinary (ASX: XAO) down 0.9% for the day. Indeed, Pure Food’s share price gains now place it at the top of the All Ords leaderboardâ¦ once again.
What does Pure Foods do?
Pure Foods Tasmania was formed in 2015 and started trading on the ASX in April 2020.
The company’s business strategy is to acquire and develop premium food businesses in Tasmania. Today, Pure Foods has acquired two companies, owned through separate wholly owned subsidiaries. Tasmanian Pate, which supplies many chains of top brands such as Woolworths Group Ltd. (ASX: WOW), Aldi and Costco. And Woodbridge, which produces premium Tasmanian smoked salmon and trout.
Why is the Pure Foods share price beating ASX returns?
The Tasmanian-based seafood and pÃ¢tÃ© specialist has had an exceptional 2-month run as the share price has risen 320% since July 24.
Pure Food’s share price really took off in early August after releasing its quarterly performance report on July 30. The company has shown that it has been successful in maintaining robust export sales despite disruption from COVID-19 and latent trade frictions between Australia and China.
In a forward-looking statement, Pure Foods predicts 22% full-year revenue growth from fiscal year 19.
Shareholders were rewarded again on August 6, when Pure Foods announced the launch of 3 of its premium pÃ¢tÃ©s in 850 Woolworths stores.
And the good news kept coming.
On September 9, Pure Foods announced the acquisition of the Daly Potato Company for $ 1.8 million in a mix of cash and stock. The company grows potatoes in Tasmania and distributes its potato salads to supermarket chains across Australia.
Pure Foods chief executive Michael Cooper called it a great opportunity for the company’s shareholders, saying it cemented the company’s strategy of “stepping into new categories.”
He added: âMeal solutions represent a billion dollar market in Australia alone and we also see a great opportunity to support our Asian customers with unique 100% Tasmanian-based meal solutions. “
At the current price of 96 cents per share, Pure Foods has a market cap of $ 46.8 million.