Australian Primary Hemp (ASX:APH) share price is up 10%. Here's why

The Australian Primary Hemp Ltd (ASX: APH) share price is up 10% today following another major retail distribution agreement.

| More on:
A fit man flexes his muscles, indicating a positive share price movement on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian Primary Hemp Ltd (ASX: APH) share price is racing up this morning following another retail distribution agreement.

Shares in the premium plant-based and wellness company are up 10.34% at 48 cents at the time of writing.

New retail distribution agreement

In this morning's release, Australian Primary Hemp advised it has secured its second retail distribution agreement with Woolworths Group Ltd (ASX: WOW).

Under the deal, Australian Primary Help will supply its Mt. Elephant 'mylk' branded hemp and oat-milk products across 165 Woolworths stores. This includes its barista/original oat and hemp mylk, and chocolate oat and hemp mylk.

Both products will be available to consumers to purchase from April onwards.

It's estimated that the new deal will generate around $250,000 per year for Australia Primary Hemp.

The company signed its first retail distribution agreement with Woolworths last month for Mt. Elephant baking products. That contract, which starts next month, is worth roughly $2.1 million.

A report published from Global Market Insights in October 2020 estimates that the global plant-based milk market will grow. Consumer taste is ever-changing with increasing demand for more healthier options other than soy or almond milk. Forecasts value the plant-based milk sector at $28 billion before 2026.

What did management say?

Australian Primary Hemp managing director and CEO Neale Joseph welcomed the new deal, saying:

This second agreement with Woolworths will expand the range of Mt. Elephant products being ranged in Woolworths stores and increase consumers' choices for high-quality plant-based superfoods.

This is just the beginning for our mylk products, and positions APH strongly to open further doors to develop even more products as demand for plant-based milk grow.

We are immensely pleased with Woolworths' choice to introduce even more Mt. Elephant products to consumers.

Our Mt. Elephant product range continues to gather commercial momentum, and APH continues to make significant progress in meeting the company's commercialisation and distribution goals with this brand.

About the Australian Primary Hemp share price

The Australian Primary Hemp share price has soared more than 200% in the last 12 months. The company's shares hit a low of 4.9 cents last March, but have since gathered steam. Its shares reached an all-time high of 62 cents just a few weeks ago in January.

Based on the current share price, Australian Primary Hemp commands a market capitalisation of $43 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares can rise 20% to 50%

Let's see which shares are being tipped to rocket from current levels.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Broker Notes

Why Guzman Y Gomez shares are a sell

Goldman Sachs has given its verdict on the burrito seller.

Read more »

A man pulls a shocked expression with mouth wide open as he holds up his laptop.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

How are ASX 200 investors responding to the latest Aussie inflation numbers?

The ASX 200 was up 0.2% today before the ABS reported the latest inflation figures.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Broker Notes

Macquarie sees more upside in Telstra shares – What are they worth?

Telstra shares are up 34% over the past year, and Macquarie thinks there's more to come.

Read more »