Latest update, 31 May, was eventually seen as ‘less bad than it might have been’, and Directors buying; SP is up bit since early June low of $3.40:
• Sales normalising through May to pre COVID volumes in retail grocery in Australia.
• Lower demand in Out of Home and Industrial Channels through April and May, with tentative signs of recovery arising from changes to stay at home restrictions.
• Increasing export demand in SE Asia and China from retail grocery channels after periods of significant decline in the first quarter of calendar 2020.
• Margin decline against pre COVID plan given shifts in channel and portfolio mix.
• No delays in supply chain arrangements have been experienced into China and SE Asia.
• Reshaping of operational footprint to increase efficiency and realise material cash savings into FY 2021. Costs of restructuring and write-down of non-cash obsolete and discontinued stock provision to be required for FY 2020.
• Material impact on second half profitability with consequential flow on impact to our pre COVID 19 expectations
Also, sneeking in on the bottom point, as indicated,
The Company remains focused on “delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks.”
– 20% of branded UHT milk (“Australia’s Own”, + MilkLab) … big in Asia
– largest on-roof solar battery project in Vic (Shepparton factory) … offset for dairy
– coming to an end of the 5-year spend for new facilities and marketing
– am somewhat suss for their cereal and snack offerings, as they are relegated to the niche end of the supermarket aisles
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