AOH has a controlling stake in the Cootamundra Oilseeds crush plant. Photo: Liz Wells

NASDAQ-LISTED Australian Oilseeds Holdings (AOH) has posted a net loss of AU$646,000 for the September 2024 quarter, despite delivering sales revenue growth of 6.1 percent.

This result is a 316pc drop from the $1.4 million profit recorded for the same period last year.

AOH has an 82.7pc stake in the Cootamundra Oilseeds crushing plant on the south-west slopes of New South Wales, and via a subsidiary is progressing plans to construct a new crushing facility at Emerald in Central Queensland.

It also has a controlling stake in Good Earth Oils, a retail brand that sells cold-pressed canola, vegetable and olive oils.

In a release published to the United States Securities and Exchange Commission on Monday, the company attributed the July-September 2024 result to increased costs of canola seed and labour, as well as the higher cost to produce retail goods compared to wholesale oils.

Via subsidiary Good Earth Oils, AOH has been working to increase its retail contracts over the wholesale market.

Sales revenue for the quarter grew 6.1pc to $10.4M with retail oil sales jumping from $3.5M to $5.7M.

Wholesale sales fell $1.1M to $2.1M for the quarter, partially offsetting the gains in the retail market.

High-protein meal for the feed industry represented 24.3pc of AOH’s revenue, down $200,000 from the same period in 2024.

The company attributed this slight drop to a decrease in the sales price of protein meal due to a drop in demand following rain across parts of Australia.

Earlier this year, AOH announced expanded distribution of its Good Earth Oils at Woolworths stores as well as a partnership with Chinese firm, Shanghai Maiwei Trading Co. for the sales, marketing, and distribution of the brand in China.

AOH chief executive officer Gary Seaton said the results demonstrated the strength of the company’s retail offerings.

“We delivered exceptionally strong growth in our retail oils business during the first quarter, driven primarily by our expanded distribution in Costco and Woolworths in Australia,” Mr Seaton said.

“While margins and profitability were impacted by the timing of our investments in branding initiatives during the quarter, as planned, we believe we are still well positioned to drive improving results as our business continues to grow and scale.”

In a January 21 release, AOH announced that Shanghai Maiwei would oversee all Good Earth Oil branding activities in China, supported by teams in Shanghai, Shenzhen, and Hebei.

Warehouses in Shanghai and Hebei would ensure efficient nationwide distribution.

Mr Seaton said China’s growing middle class, and rising consumer awareness of healthier food options, are driving steady growth in the market for “chemical-free” canola and olive oil.

“This partnership marks a significant step in bringing high-quality Australian oils to Chinese consumers.

“The strong potential for our [Good Earth Oils] brand in China, combined with our partner’s established market presence and deep regional expertise, creates a solid foundation for sustainable growth.”

The company, via subsidiary Australian Oilseed Investments, confirmed it was in discussions with other retail chains in both Australia and the United States for supply of its range of vegetable oils.

Source: Australian Oilseed Holdings, SEC