I wouldn't say investment costs as negative as its whats required to achieve additional growth. They can't sit by and assume same re-investment and we going to get growth.... hence that is why additional investments are required.
For FY17 guidance, I think we need to go back to FY16 statements... BAL has said that key to growth is additional volumes... which makes sense - you can't sell something if you don't have products.
Given 2HFY16 margin is like 25.5%, imagine receiving that throughout FY17, as opposed to only 6 months and with only Tatura milk onboard.
FY17 is probably the highest accelerated growth and FY18 should be even higher.
Check out the "Launch pad" from 2014 - Ever increasing growth
BAL Price at posting:
$13.37 Sentiment: Buy Disclosure: Held
