SPC builds comeback on milk powder, not peaches
SPC's milk powder business for Asia drove an $8.2 million operating income jump despite 12 per cent sales fall.
Australian food icon SPC is fighting back from years of financial trouble, driven by milk powder for Asia. In 2024, the company merged with Nature One, The Original Juice Co, and Natural Ingredients, building a diversified business.
Milk powder with added vitamins and supplements is now the core offering. SPC sells in 15 Asian markets with strong positions in Singapore, Hong Kong, Vietnam, Indonesia, and Malaysia, plus growth in China.
It is also expanding into the Middle East after signing a memorandum of understanding with the Shahin family office for potential distribution across the region. At home, SPC abandoned low-margin private-label production to focus on higher-margin branded products.
Operating income jumped to $38.5 million despite total sales falling almost 12 per cent to $331.8 million. The company still posts losses and carries $85.8 million in net debt, but improved margins show the turnaround is gaining traction.
- 15
- Markets served
- $38.5 million
- Operating income
- $331.8 million
- Total sales
- $85.8 million
- Net debt
Why it mattersSPC's recovery shows Australian food brands can compete globally on quality, not just commodities. Asian markets will pay premium prices for Australian products.
AustraliaSPC employs hundreds in Australia and supplies local retailers; a genuine turnaround protects jobs and shows Australian food manufacturers can export successfully beyond traditional markets.
✓ Claims checked against the source and corrected before publish. checked 2 d ago
