I agree Menza, that reads like a downgrade to me. Wholesale prices down $2/kg is material as TGR's operating leverage is quite significant. If you annualise this impact just for TGR's Wholesale Ops, it equals $10m in revenues & ~$5m in EBITDA pending fixed/variable costs assumptions. And if this is the pricing dynamic in Wholsesale, it has to reach into the Retail Ops as well within the next 6-12mths you would think.
They are also highlighting the increasing competition in Salmon markets as well, no surprise there, as we saw with HUO's announcement last week. And now, all of a sudden, TGR is shifting strategic focus to be "Salmon & Seafood". I suspect that sort of commentary will scare a few of the Instos investors, especially cum an acquisition. And I suppose you wouldn't want to be putting a downgrade out there if you need to raise equity for a potential acquisition. Hmmmmm, very circumspect ...
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