The Freedom Foods Group Ltd (ASX: FNP) share price has been a very strong performer on Tuesday.
In late afternoon trade the diversified food company's shares are up an impressive 23% to $5.10.
Why is the Freedom Foods share price rocketing higher?
Investors have been scrambling to buy the company's shares this afternoon following the release of an update on the impact the coronavirus outbreak is having on its business.
According to the release, Freedom Foods is one of the few companies on the Australian share market which are benefiting from the outbreak.
The company has advised that it has been experiencing strong demand for a number of key products. This includes UHT dairy and plant beverages and cereals & snacks.
This is unlikely to come as a surprise to readers who have visited a Coles Group Ltd (ASX: COL) or Woolworths Group Ltd (ASX: WOW) supermarket in recent days and witnessed bare shelves from rampant panic buying.
What now?
Management advised that it is working closely with key retailers and customers in Australia and its export markets in order to prioritise the supply within its operational capabilities.
A key focus area is prioritising the supply of its UHT dairy milk. Which, pleasingly, the company does not see any current constraints for supply of key raw materials or packaging inputs.
Outside this, management has instituted upgraded internal protocols, including protection of its key operational processes and employees required to maintain food and beverage processing.
Freedom Foods intends to update the market with any further trading and operational developments as and when they occur.
In other news.
Elsewhere, another company which has experienced an uptick in sales due to the coronavirus is Zoono Group Ltd (ASX: ZNO). This afternoon the biotechnology company revealed that revenues quarter to date (11 weeks) are NZ$11 million. This compares very favourably to the revenues of NZ$1.715 million it generated for the entire first half of FY 2020.
This has been driven by strong demand for anti-microbial solutions following the outbreak of the coronavirus.
