To a large degree they will rise (and fall) with each other.
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Hi, FP. No, I mean as follows: Revenue $10m, cost of goods sold $9m, then gross profit = $1m, gross profit margin = 10%. But revenue $10m, cost of goods sold $8m, then gross profit margin = 20%. Obviously then a higher gross margin is a larger multiplier on change in revenue. Hence my concern about whether BLT is exhibiting a pretty restrained gross margin %, since the profit does not seem to increase a whole lot as revenue increases (as I am reading it anyway), and whether therefore maybe it is time to consider raising prices rather than just going for increases in volume that seem to be hard work to come by? So in this example, revenue $11m (increase price by 10%) and costs of goods sold = $9m as before, then gross profit = $2m, gross margin = 18%.
Since we do not seem to be seeing on historical figures that the cost of goods sold can be reduced per $m of revenue (as I read the accounts anyway, costs do not seem to reduce so far), raising the gross margin would be instead achieved by raising the price on the same volume (subject to lost sales obviously). Obviously that involves a judgement call though. Just wondering out loud.
VWAP= nearly 3.2c (a mere 22k ended the day at 3c but also 149k thru at 3.3c) ........so another reasonable day of price re-valuing. These small daily/weekly gains of .1/.2c are a healthy sign I believe that a sustainable turn-around is being factored in here.......fingers crossed I'm right.
Re margins,
Pharmacy Direct Au sell Daily Defence for $11 and in NZ for $13.95.
Woohoo..... yet more positive news ... released just 1hr ago. Full regulatory approval been granted for BLIS into the huge and wealthy Canadian market. Significant labelling claims also approved. Congrats directors keep up the good work....SP starting to reflect your efforts..
https://www.chemistwarehouse.com.au/...ic-30-lozenges
Difflam with Blis K12
Seems to me that the BLT story is getting out there and slow buying is taking place with more good news to come something, watch this space !
.......I wonder if iNova will be responsible for Canada as well........can anyone confirm this? Canada could/should be a very profitable market for Blis so lets hope it is really promoted well wether it is through our own BLIS brand or as ingredients for other brands. Be nice to know the answers to those questions. Onwards and upwards either way.......goodtimes ahead Im thinking.