‘Unwavering’: Milklab maker’s boss unfazed by $161 million loss

Milklab manufacturer Noumi is pinning its hopes on the continued growth of its prized brand to turn around a balance sheet battered by an expensive dispute settlement, high dairy prices, Russia-triggered geopolitical instability, and COVID-19 disruption.

Noumi (formerly Freedom Foods), which also makes other beverage and milk-powder brands including Australia’s Own, Vital Strength and Uprotein, on Monday unveiled profit, revenue, and earnings that all slid backwards in the 2022 financial year.

The company suffered $161.1 million in net losses after tax, deepening from $38.6 million in 2021. Adjusted operating EBITDA and revenue tumbled by 68 per cent and 5 per cent respectively.

Noumi’s net losses were driven by its expensive settlement with a former supplier, US almond grower Blue Diamond, which took a $55.6 million bite, as well as a non-cash asset impairment of $95.7 million amid high input costs and rocketing farmgate milk prices, which have been passed on to consumers.

But the popularity of cult favourite Milklab drove a surge in plant-based beverage sales, one of the few bright spots in Noumi’s 2022 results.

Milklab sales rose 18.7 per cent to $49.8 million. More broadly, revenue from its plant-based beverage business was up 7.2 per cent to $164 million and adjusted operating EBITDA jumped 30.3 per cent to $33.4 million.

Noumi chief executive Michael Perich, who stepped into the top job after a spectacular corporate implosion in mid-2020, said he remained committed to the company.

“I’m absolutely excited about the potential within this business,” Perich said, pointing to Australia’s role as a “food bowl” to Asia.