Free Range and new standards, page-3

Hi Rush-in,
good find on abc!Could you please send a link to this law search site about Lendich?
I agree as well, there should be some standards about free range and the 5 level system for labelling seems like a good solution. Also I really hope the fines wont be massive, but looking at Coles 2 milion fine I do not believe the court can fine FRM with 10 mil ticket? Directors can be punished but FRM seems to be on a side of it, especially with Lendich already out of the company and being a main culprit cause of meeting speaker.

The other thing is not clear to me is how they perform financially:
For H1 2014 they recorded 52 k loss apparently due to the shortage of eggs.
Then H2 2014 they recored 2.2 mil profit and H1 2015 2.5 mil profit (excl impairment) in the times of eggs shortage cause the shortage worked in favour of the company due to the higher egg prices
Then suddenly the forecast for the H2 2015 is a margin squeeze and no hope for repeating H2 2014 result due to the over production. I am confused here. What is the perfect situation for them to get a profit? under supply or over supply? Mixed predictions.

Interestingly enough when I analysed all financial statements 5 years back, FRM has always been operating cash flow positive but hovering around breakeven or small net loss. The financial rules are saying that if there is a net profit but negative op cash flow there is a creative accounting happening. However in this case I believe they have a funny way of reporting profit. Look how much inventory movement impacts bottom line.

I personally am much happier with their 4.7 mil op cash flow for H1 rather than big npat. They are generating lots of cash and seems stable. Operating cash flow for 2015 seems to hit 8 milion which would bring debt level down to 6 milion by end of this month. They also confirmed in the half yearly report to meet quarterly debt requirements. We just need that ACCC out of the way!