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Goat milk infant formula player Nuchev (ASX: NUC) has beaten prospectus predictions in its first quarterly report to the ASX this morning.
Both sales volumes (measured in metric tonnes) and revenue came out comfortably on top of prospectus estimates released prior to the group's $48.7 million IPO.
During the first half the company sold 265.7 metric tonnes of product, up from a predicted 204.5, representing a 10 per cent improvement on expectations.
Similarly, the company generated $8.1 million during 1H20, seven per cent up from a prospectus forecast of $7.6 million.
During the first quarter Nuchev says it has continued its strong sales momentum with retail partners like Chemist Warehouse, Coles, and the group's corporate Daigou.
The company's business remains strong in Chinese markets where retailers like TMall, JD, and VIP have been selling the group's Oli6 brand.
"The sustained rapid growth of the company's TMall flagship store underpins the growing awareness and credibility of the Oli6 brand in China, further evidenced by Oli6's strong comparative performance in this year's "China Singles Day", the largest shopping day in the world," says Nuchev.
Nuchev CEO Ben Dingle says the company's IPO was key to assist the company's penetration of the Chinese market.
"It is pleasing to see our focused, fast growing Oli6 brand and Nuchev team continuing to perform in the dynamic and fast moving [infant formula] market," says Dingle.
"The successful IPO was an important step to position and accelerate our growth strategy within the very significant goat [infant formula] market opportunity."
Nuchev listed on the 9 December 2019, with the company hoping to take its slice of the US$45.12 billion infant formula market.
Read more: Investors thirsty for ASX debutante Nuchev's goat milk infant formula
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Business News Australia
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