Insider Buying Frenzy: Why AHF Could Be the Next $250M Dairy Giant, page-265

Haha Werdy, I can’t understand why you don’t get it still… let’s not confuse a temporary increase in absolute costs with the real, structural improvements underway...

Yes, revenue and costs are lower overall since we exited high-cost dairy processing, that was a necessary step. What matters is that the company has fundamentally restructured its cost base to focus on high-margin infant formula.

The cyclical nature of production means you’ll see spikes in manufacturing costs when ramping up output, which is perfectly normal when launching new products. Those cost upticks are the price of scaling a premium business model and they’re temporary.

The fact that production and sales are lower now isn’t a weakness; it’s a deliberate shift from a volume-based, low-margin model to one that prioritises efficiency and profitability.Even if overall costs have risen slightly since late FY24, that’s simply the investment required for launching ‘Future’.

Once production scales up and these one-off launch costs are absorbed, margins will improve significantly. So dismissing these changes as no cost slashing misses the point: the company has trimmed inefficient operations and is now setting the stage for a far more profitable, premium future.