A major concern of mine is that for the past few years is that MCP's sales have remained pretty much static, but reported profitability as a % of sales has fallen dramatically.
In 2010/2011 on sales of $290mio they reported NPAT of $25.8mio for a NPAT/Sales ratio of 8.9%
In 2011/2012 on sales of $276mio they reported NPAT of $18.4mio for a NPAT/Sales ratio of 6.7%
For 2012/2013 based on their trading update numbers), sales are forecast to total approx $300mio, reported NPAT 15.5 for a NPAT/Sales ratio of 5.2%
Further, based on the trading update it seems the 2nd half 2012/2013 NPAT/Sales has fallen to a dismal 3.2%.
MCP have a lot of work to do before they get back to anything like reasonable sustainable profitability. And at the moment all of the factors are against them, low consumer confidence, Coles/Woollies squeezing even harder, the weakening AUD etc.
Fortunately I offloaded the bulk of my holdings some time ago and I really cannot lose on the remainder which I bought at 38c courtesy of PPT
MCP Price at posting:
$1.29 Sentiment: Hold Disclosure: Held
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