Ann: Trading update, page-2

So given underlying FY earnings growth of ~30%, when the first half was essentially flat, we are looking at growth rates in the order of 45-50% when annualised (H2FY20 v H2FY19). With a consistent payout ratio of 80% gives this a prospective dividend yield of 8.5% versus a risk free rate of 0.25%. More importantly, early indications are that there are sustained changes in demand.

There are so many levers for upside including:
- export markets with a lower AUD
- inflation of consumer goods
- competitive advantages over international competitors at the distribution level given Covid and the lower AUD tailwind
- possible flagged cuts in the domestic corporate tax rates
- long term structural tailwinds to an inflationary environment in the years ahead
- consumer sentiment changes towards home grown in the domestic market

Not sure what the market is seeing that I am not- this is cheap on any metric, under any foreseeable economic scenario moving forward.