Camperdown Dairy Company has extended its production contract with New Zealand yoghurt brand The Collective by two years, potentially doubling the value of the deal for owner Australian Dairy Nutritionals Group.
ADN told the ASX on Monday that the four-year deal signed between Camperdown and The Collective in April 2018 had been extended to six years on the back of pleasing sales volumes.
Camperdown, which currently produces 17 products for The Collective that are stocked in Woolworths nationally, has also agreed to install a high speed pouch machine to boost production.
ADN duly upgraded the contract's revenue forecasts from $30 million over four years to between $60 million and $70 million over the longer period.
Shares in ADN were flat at 14.5 cents at 1215 AEST on Monday.
The company added 16 per cent to its share price last week after continuing its shift from white milk to infant formula with the $5 million purchase of an offshore powder processing plant.
