Ann: Quarterly Activities Report & Appendix 4C, page-19

No Margin? Disagree. Excerpt from a recent interview with Alan Kohler:


"What sort of margin are you doing?

We’ve got, right now, a 42 per cent margin for our products and that’s up from about 38 per cent last year and 29 per cent the year before. We’re still subscale, relatively speaking. We believe and we have basically a hitlist of actionable items that we are targeting to get us to 48 to 50 per cent over the next 12 to 24 months. One of the reasons that retailers love our products is that they can sell the product at a 50 to 65 per cent margin. It’s not a fashion related product like most of their other businesses that are selling clothing, so they don’t have the hit the fashions right. Nobody’s ever marked down the product that I’m aware of or had to close it out, it’s got a very long shelf life, so it really is a good bargain for everybody.We’ve got a great product line, our retail customers make a lot of money on it from a margin standpoint, it’s high turn, we don’t have to worry about any markdown money or close-outs. Consumers in the US, the candy category has a 98 per cent household penetration and the average consumer purchases 33 times a year, so consumers love it and there was really just this void that I saw in the specialty market and this opportunity to take a good product market fit in a big category that’s wide open and start selling our products into this market."

disallowed link/investment-news/keith-cohn-takes-candy-to-the-check-out-counter/149712?v=1055973#42%20Per%20Cent%20margin

IMO DYOR

MJ