The Directors and management knew. That's why they were selling off recently post results.
Printable View
the asx open might be savage they tend to maul profit downgrades big time
Topping up opportunities. Things are still up. Please sell....The Ausie will scoop it up. No worries :)
Notwithstanding the significant uncertainty and volatility in market conditions as a result of COVID-19 we have determined it appropriate to provide an update to our outlook to include our view of Group revenue as follows: - Group revenue for 1H21 of $725 million to $775 million - Group revenue for FY21 of $1.80 billion to $1.90 billion - Group EBITDA margin for FY21 in the order of 31%.
It should be noted that the sale of infant formula through the daigou channel is only one component of our multi-channel and multi-product sales strategy into China. Our growth plan assumes MBS and CBEC sales will represent an increasing proportion of our infant nutrition business over time, driven by the continuing growth in underlying consumer demand.
Oh dear...sales for the first half are now forecast to be below last year !!
Sales at the mid point now forecast to grow for the year at just 6.8% and all of that is "hoped for" in the second half.
Some people sniffed out trouble well ahead before it was announced. It would seem their nose for a feed AND for trouble coming is still working well.
From market screener, average analyst revenue forecast was $2.075m and EBITDA margin was 31% so the new forecast at the mid point of $1.850m is 11% below that.
The real question is will the market correct more than 11% to account for the slower growth and ascribe this a lower PE ?
The significant market underperformance since March 2018 when I sold out continues... I have no idea why anyone would hold an outsize position in this company anymore. Growth has been slowing down for years.
Aussies could give this a real belting when they open...but what would I know...