What's with the Keytone Dairy (ASX:KTD) share price today?

The dairy company's share price has been in the doldrums this afternoon.

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The Keytone Dairy Corporation Ltd (ASX: KTD) share price has failed to fire up in trading today and has currently returned to its opening price of 14 cents.

Today's doldrums come as the company released its first-quarter FY22 earnings earlier today. Let's take a closer look at the results.

Quick refresher on Keytone Dairy

Keytone Dairy manufactures and exports dairy products related to health, wellness and nutrition. It derives most of its revenue from the New Zealand market.

It has expertise in formulated powders and ready-to-drink protein shakes. Its flagship brands are KeyDairy, KeyHealth and FaceClear.

Keytone Dairy has a market capitalisation of $38 million at the time of writing.

Keytone's quarterly results

For its first quarter in FY22, Keytone recognised revenue of $13.4 million, representing year-on-year growth of 17%.

Most of the contribution came from its Australian operations, where it recognised $10.3 million versus $3.1 million from its New Zealand dairy business.

Keytone said the uplift in total revenue did not reflect "new contract wins, principally the Coles contract".

Recall that Keytone recently started its $5 million contract with Coles, with the first products dispatched in "late June 2021". The company said revenue from this contract would be "realised from September onwards".

The company also realised $12.8 million in cash receipts this quarter, up 56% from the quarter prior.

Additionally, the company allocated $408,000 of capital expenditures on its "Sydney protein bar/snacking plant". However, the costs were "completely offset" by the receipt of a "manufacturing modernisation grant" of $440,000.

Additional takeouts from the report

Keytone also completed the launch of its new energy drink initiative, Tonik Energy, into Australia and New Zealand.

As a result, the first production run "was completely pre-sold to select distributors" for around $100,000.

Moreover, Keytone also secured a "competitive trade debtor facility" of $7 million for working capital and "further strategic growth initiatives" in Australia.

Keytone explains the funds will be "deployed to focus on organic growth initiatives, new contract wins and the growing sales pipeline".

Speaking on the release, Keytone CEO Danny Rotman said:

The first quarter of FY22 has seen a number of initiatives worked on through the back end of FY21 begin to come to fruition with the results starting to flow through to the operational units of Keytone.

Keytone Dairy share price snapshot

The Keytone Dairy share price has underperformed the broad index this year to date, posting a loss of 46% since January 1.

This extends the previous 12 month's loss of 39%, whereas the S&P/ASX 200 Index (ASX: XJO) has posted a return of around 23% over the same time.

Despite this, in the last 1 month, The Keytone Dairy share price has climbed 12.5% into the green.

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