Canadian soap company spikes 164% this week as demand for hand sanitizer soars amid COVID-19 pandemic
- A Canadian soap company soared 164% this week after the company reported earnings that showed increased demand for its soap and hand sanitizer products amid the COVID-19 pandemic.
- Acasta Enterprises said in its earnings release on Tuesday that revenue more than doubled to C$98 million in the quarter, while earnings rocketed 736% compared to the prior year.
- Acasta Enterprises was originally a SPAC, or "blank check" company that acquired Apollo Health & Beauty Care in 2016.
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Talk about being at the right place, at the right time.
One company that's clearly benefiting from the COVID-19 pandemic is Acasta Enterprises, a Canadian company that sells soap and hand sanitizer.
Acasta reported its second quarter earnings on Tuesday, and since then its stock has rocketed, jumping 164% so far this week to $1.85.
Acasta said revenues more than doubled to C$98 million in the quarter from C$40.4 million, while Ebitda soared 736% to C$30.1 million from C$3.6 million, relative to the year before.
Acasta was originally a SPAC, or "blank check" company, that was focused on making an acquisition after raising money from investors. In 2016, the company acquired Apollo Health & Beauty Care, which is one of the largest private label manufacturers of personal care products in North America.
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The company sells its products in well-known retailers like Walmart and CVS.
But since the SPAC deal went through, shares floundered, cratering as much as 98% to C$0.25 in April.
In the company's SEDAR regulatory filing, Acasta said it attracted new customers and "augmented existing customer demand" for its cleanser and sanitizer products.
The company seems to have used its recent windfall in earnings to pay down debts, saying that it retired C$29 million in debt during the six months ended June 30.
Shares of Acasta Enterprise trade on the Toronto Stock Exchange under the ticker symbol AEF.TO.