Marketing and Overhead costs will be higher in FY19, EBITDA to sales ratio broadly consistent with FY18, hopefully the market doesn't focus on these points aye.
Printable View
Marketing and Overhead costs will be higher in FY19, EBITDA to sales ratio broadly consistent with FY18, hopefully the market doesn't focus on these points aye.
I don't see what the issue is. Marketing and overhead are going up in line with sales so the EBITDA ratio stays about the same and that's a problem because ?????????
That's how companies grow, it doesn't happen by accident.
i think its the right strategy spend lots more on marketing , dont worry about profits short term.
i see some of this years profit was from currency movements so did they actually best estimates? looks like a miss to me
I'll digest this over a flat white later in the day, but on the face of it seems a solid result. Good margins, growth continues - just no mention of the D word.....which they certainly could afford.
I'm comfortable with the increased investment in marketing - however always a difficult one, as never easy to quantify spend and effectiveness and if the marketing department are allowed, then they will use every colouring in pencil at their disposal. Brand is key to A2 and have to become the Coke of the sector.
I like the flashing lights, even if they were already known. Doubling of NPAT, revenue growth in China, 163%... Synlait building new dairy plant to keep up with demand, EBIT margin to be consistent.
Some other good comments in the report about competition, awareness of A1 free milk and their unique offering. If the market grows, so will they. Looks good.
No divvy :( I guess we will continue to be on the rollercoaster for at least another half year ...
Thank god theres no divvy. When a high growth company decides one day it doesnt know what to do with its free cash thats when it becomes a POS! Topping up today
All the numbers are as expected.
Even Net Profit of $195.7m was in the $190-$206 range.
No dividend, weak commentary on 2019.
This was as exciting as it gets:
Jayne did not dazzle.Quote:
The first signs of competition from a major international company in the A1 protein free category appeared in
March 2018. There has been no apparent impact on our sales momentum as a consequence of this launch.
So no share price spike today.
SP may even head South.
Hope I am wrong.
When the only thing not met was my own undisclosed expectations.
I think its good the company hasn't published its growth expectations.
Why would you signal to your competitors that you plan to grow revenue by 40, 70, 120% in the next 12 months? If you were a competitor and you knew this figure, would it be to your advantage or A2's?
I’m beginning to think the investing (gambling) world would be a much better place if companies only had to report once every few years.
All this regular reporting etc etc etc just confirms we are all traders / gamblers / punters who are driven crazy without a form guide to study.
None of us are real investors ...OK one in a thousand might be
Kiwi fruit (gold) was nice for breakfast ....and plain cheap milk on the porridge