Wattle Health shares are trading higher after the infant formula maker promised investors it would lift its game following a year beset by logistical hurdles, including delays in obtaining China sales registration.
Executive chairman Lazarus Karasavvidis acknowledged on Wednesday that shareholders were unsatisfied with the valuation of the company, including a share price decline of more than 60 per cent during the past 12 months.
Mr Karasavvidis said Wattle had suffered as a result of construction delays at the Corio Bay Dairy Group facility, which it holds a stake in, while a hold-up in obtaining Chinese product registration had prevented the company accessing lucrative retail channels.
But investors have been told greener pastures lie ahead, especially as production ramps up for its new organic brand Uganic in August.
“I want to assure you that the board, management, all employees and particularly myself are extremely aware of this situation and are very focused on improving performance, explaining and executing our strategy and rebuilding value,” Mr Karasavvidis said in a letter to shareholders.
Wattle Health has also asked shareholders to approve increasing the company’s stake in manufacturer Blend and Pack Pty Ltd to 93.5 per cent.
“We believe both Blend and Pack and CBDG will add significant value and additional revenue streams to WHA,” Mr Karasavvidis said.
“Both initiatives will diversify our risk profile and open significant market opportunities.”
Shares in the company rose 1.09 per cent to 46.5 cents by 1112 AEST.
That is still 83 per cent down on the company’s highest share price of $2.80 in January 2018.