Lynch Group holds a unique position amongst listed companies on the ASX. We are a 100-year-old company, the largest distributor of floral products in Australia, primarily through the supermarket channel and the largest grower of premium flowers in the Chinese market. This combination of strong but predictable growth in Australia with the high growth offered by selling to Chinese domestic consumers in a low-risk environment provides shareholders the opportunity to participate in an exciting long term growth story.
FY22 Strategic Priorities … key operational objectives we are working on across FY22. …
In Australia, supporting our customers to give consumers a great experience with floral products in the convenience of a supermarket setting will see the retail channel share of supermarkets continue to expand over time. The implementation of our new merchandising technology platform will be completed before the end of this financial year. This will improve our merchandising efficiency, effectiveness and scale over time, underpinning sales growth with low waste as we continue to grow our SOR store network and merchandise more of our core stores. We continue to focus on implementing incremental operational improvements, particularly in labour efficiency and product quality. A big part of this will be achieved through the development of a new purpose-built production facility at Ingleburn in Sydney, which is due for completion by Q1 of FY23, with construction now underway. We are also working to open up new channels to market via a potted program we have recently commenced with Big W, and by expanding our markets operation into Queensland through the recently announced Rocklea markets acquisition.
In China, in parallel with executing on our ongoing greenhouse expansion plans, we are focussed on pushing more of our Australian know-how in product development and customer service, to open up more opportunities in the consumer market. Additional packing capacity via our new Changkou farm warehouse, and also through replication of the Shanghai warehouse model into other major consumer markets, will enable us to serve more customers with a broader range of fresh value-added products, and commence in-store merchandising support.
Confirmed CY21 NPATA Guidance
We reconfirm our NPATA guidance for the twelve months to December 2021 of between $31.6 million – $32.6 million, being the remainder of the prospectus forecast period.
