Key Highlights

  • The nutritional ingredients maker lodged its full-year results, results presentation and board succession plan with the ASX on 23 September 2026.
  • The board declared a fully franked final Dividend of 1.25 cents per share.
  • The results presentation showed gains across most key measures.
  • Revenue climbed from $86.0 million to $97.4 million, an increase of 13.3%, and came in above the $92 million to $96 million guidance range the company referenced.

Clover Corporation (ASX:CLV) has reported record Revenue and a sharply higher profit for the 2026 financial year, while confirming that long-serving chairman Rupert Harrington will step down from the board at this year's annual general meeting. The nutritional ingredients maker lodged its full-year results, results presentation and board succession plan with the ASX on 23 September 2026.

For the 12 months to 31 July 2026, Clover delivered revenue of $97.4 million, up 13% on the prior year and ahead of its earlier guidance range, alongside net profit after tax (NPAT) of $10.5 million, a 50% increase on the $7.0 million reported in FY25. The board declared a fully franked final dividend of 1.25 cents per share.

FY26 results at a glance

The results presentation showed gains across most key measures. Revenue climbed from $86.0 million to $97.4 million, an increase of 13.3%, and came in above the $92 million to $96 million guidance range the company referenced. Second-half revenue was $53.3 million, compared with $44.1 million in the first half, which the company said represented a 10% increase on the same period a year earlier.

Gross profit rose 32% to $34.6 million, lifting gross Margin to 35.5% from 30.5%. EBITDA increased 39% to $17.0 million, with the EBITDA margin improving to 17.5% from 14.2%. Earnings Per Share rose to 6.3 cents from 4.2 cents, while annualised Return on Equity improved to 13.4% from 9.7%.

According to the presentation, strong growth in Australia and New Zealand and in Europe more than offset declines in Asia and the Americas. Clover attributed the margin improvement to a more favourable customer and product mix and benefits from vertical integration into its Supply chain, while operating costs grew 8% on additional headcount.

Cash flow, inventory and the balance sheet

The profit lift did not flow through fully to operating cash flow. Net cash inflow from Operating Activities was $4.4 million in FY26, down from $8.3 million in FY25, which the company put down to a deliberate build of oil inventories and safety stocks of microencapsulated powders against strong customer forecasts.

Inventory rose by $19.8 million to $43.9 million, while trade debtors fell to $17.3 million from $25.1 million. Net Working Capital increased by $7.5 million to $49.8 million. Management described the higher inventory as consistent with its expectations and a strategic decision to secure stock to meet indicative customer demand, with the build reflecting continued restocking of ARA and fish oil supplies.

Clover ended the year with $7.2 million in cash, down from $8.7 million, and no interest-bearing liabilities after repaying its remaining borrowings during FY26. Net Assets increased to $78.0 million.

The final dividend of 1.25 cents per share, fully franked, will go ex-dividend on 20 October 2026, with a Record Date of 21 October and payment on 19 November 2026.

What management said

Chief executive Peter Davey pointed to the breadth of the improvement. "FY26 was a strong year for Clover, with record revenue of $97.4 million and NPAT increasing 50% to $10.5 million," he said. "Importantly, the improvement was broad based, with a continued focus on diversified earnings."

He also credited earlier Investment in supply chain assets. "The investments we have made in supply chain security and vertical integration are delivering tangible benefits," Mr Davey said, adding that Melody Dairies had achieved higher production volumes and lower unit costs, while the Ecuador operation had become an important source of quality Crude Oil at competitive costs.

Inside the operations and product pipeline

Clover's Business centres on microencapsulation technology that protects sensitive nutritional oils, such as tuna, fish, algal and fungal oils, from oxidation so they can be used as free-flowing powders in infant formula, foods and beverages.

The company said Demand from infant formula customers for its ARA powders was a key driver during the year. In its DHA (omega-3) range, Diversification into non-allergenic, higher fortification and plant-based powders supported both revenue and margins.

On the supply side, the Ecuador tuna oil extraction Facility provided a secure, competitively priced source of crude oil, with tuna oil steady at 30% of total raw material inputs in FY26, and the company said potential further capacity gains are being considered. In New Zealand, the Melody Dairies facility is operating at near full capacity.

Clover also continued commercialising CholineXcel, a flowable choline powder, with non-infant customer trials under way and a review of larger-scale Manufacturing Options started. In the US nutraceuticals market, it has hired a specialist to devise a strategy and expects business development costs to increase gradually over the next two to three years.

Board succession: Harrington to retire

Separately, Clover announced that chairman Rupert Harrington will retire from the board at the conclusion of the 2026 annual general meeting, which the company intends to hold on 17 November 2026. Mr Harrington joined the board as a non-executive director on 1 July 2015 and became chair on 21 September 2017.

Non-executive director Ian Glasson has been selected as the next board chair and chair of the nomination committee. Mr Glasson, who is also a non-executive director of Ricegrowers Limited, will step down as chair of the People & Culture Committee, with non-executive director Toni Brendish taking on that role.

"Rupert's leadership, counsel and stewardship as Chair have been instrumental to Clover's growth," Mr Davey said. The company added that the board is nearing completion of a recruitment process to Fill the pending vacancy, with a further announcement to be made at the appropriate time.

Outlook for FY27

Clover said it enters FY2027 with positive momentum, supported by continued demand for its nutritional products, a vertically integrated supply chain and further expansion of its distribution network. The company also flagged significant investment in the development and commercialisation of new products.

Based on current market and global conditions, the board expects revenue for the first half of FY27 to be ahead of the prior corresponding period. No profit guidance was provided. Like all forward-looking statements, this outlook is subject to risks, including customer demand, raw material supply and costs, currency movements and the timing of new product commercialisation. The heavier inventory position also means working capital and cash conversion remain metrics to watch.

The bottom line

Clover's FY26 result shows a business growing revenue and margins at the same time, with profit up 50% and Debt fully repaid. Against that, operating Cash Flow fell as the company built inventory ahead of expected demand. With a new chair set to take over after the November AGM and first-half revenue guided higher, the focus for followers of ASX shares in the food ingredients space in September 2026 will be whether that stock build converts into sales in FY27.