A New Zealand-owned poultry company, which has invested heavily in its production capacity, is now on course to substantially increase its Australian market share in the next 12 months.
ProTen Ltd operates a broiler chicken business and has embarked on an ambitious development programme which will see its annual production increase to 42 million chickens over the next 12 months. To achieve this target, the company plans to increase the 124 growing sheds currently in operation across Australia to 172 sheds.
The company has already completed the first farm of 24 sheds and expects with the completion of the second farm in February 2014 the additional capacity will take it up to approximately nine percent of the Australian market.
This year the company expects to grow its market share and increase its supply indirectly to the growing Australian FMCG and takeaway market with the establishment of 48 new sheds, which will allow it to achieve its growth target of 172 sheds.
As the company’s investment plans have been brought to fruition the ProTen share price has also risen by 37 percent over the last two months.
ProTen Ltd was founded in New Zealand in 2001 to consolidate the broiler chicken farming businesses of four existing operations in the country.
The company’s chief executive Daniel Bryant says the traditionally stable frequency of share trade has experienced a recent spike of activity.
“With our increased production capacity bringing another 14 million chickens to market as well as favourable market demand conditions and an improvement in our loan structure, our share price has jumped over 37 percent recently,” he says.
Mr Bryant believes the company remains undervalued and is well positioned for further growth over the coming year.
The market for chicken protein in Australia has an annual growth rate of around three percent and ProTen Ltd is considering plans to increase its production by a further 14 million chickens in the next three years to help meet this demand.
Mr Bryant says ProTen’s medium term strategy is to continue to expand through new farm development, new equity and also possible acquisition.
“Our FY2015 business plan projections anticipate a revenue increase of 63 percent to AU$28.5 million and an EBITDA up 93 percent to AU$14.6 million,” says Mr Bryant.
ProTen is currently registered with the Unlisted trading facility in New Zealand which allows shareholders to buy or sell ProTen shares.
www.proten.com.au
