Media Updates, page-10012

@CarlosG

Great post and good point about the way % change in revenue/profit inevitably gets framed from year to year.

It may be standard practice to compare to 'previous corresponding period' but it's funny how easily people forget or ignore what was abnormal about that period.

2H20 revenues were pumped up due to an unprecedented pantry stocking event (COVID-19). Even if management had not done so poorly with subsequent inventory management, write-downs etc., FY21 would have still always involved comparisons with an abnormally high revenue and profit base for FY20.

And now the inventory write-downs are also a one-off to correct inventory mismanagement - in this sense another abnormal factor that will give rise to more favorable comparisons for FY22. So there is plenty for people to get all worked up about in the short term, but it's a bit of a wash in the longer term.

I think I'll follow your lead and tune back in a few months from now when there is actual news.