Dairy and plant-based food maker Jatcorp has flagged a loss as high as $8 million this financial year.
The figure reflects a further net loss of $1.5 million to $1.9 million in the second half of this financial year, compared with $6.1 million reported for the first half.
Revenue for this period declined by around $39 million, mainly due to Jatcorp’s decision to stop its international trading and the unexpected suspension of its Neurio-branded products in China.
The stronger-than-expected sales of its Moroka products in the third and fourth quarters of the year managed to offset the loss.
The Neurio dispute, which saw an unfavourable interim ruling, led to the impairment of Sunnya’s goodwill of $2,347,482.
The company experienced a $1.4 million impairment of its non-cash inventory due to the suspension of Neurio operations in China.
The legal proceedings in China cost Jatcorp $4.1 million in fees during this financial year.
Moving forward, the company will remain focused on brand development, distribution expansion, and margin recovery.
The Moroka brand portfolio will continue to expand due to high consumer engagement across key markets.
The company’s principal distributor, H&S International, remains committed to meeting its sales target of $11 million for the next financial year, representing a 22 per cent increase.
