They obviously didn't meet there targets due to COVID as can be seen in their update in March where they withdrew their FY20 guidance due to the uncertainty around sales for the rest of the financial year.
Restaurants in the major cities of Australia were shut down or dramatically disrupted for a good 2-3 months post that announcement. We are lucky management are nibble and initiate a full retail roll out strategy into supermarkets that resulted in a record quarter of sales. The fact we are even having this conversation surprises me, you do realise we are in the middle of a pandemic, a very large portion of the companies sales channels disappeared and they managed to open up new sales channels by the looks that result in a record quarter and your questioning why they didn't meet guidance? I am impressed they even sold any oysters the past 3-4 months let alone achieve a record quarter.
It could have been very bad if it wasn't for the quick and decisive actions of management to pivot its sales channels to retail supermarkets which they would have only scratched the surface of and will now make up a nice chunk of the revenue going forward i would think.
All in all its been a very nice outcome and the business is very well placed to continue growth in retail supermarkets during these unprecedented times and come out so much stronger once restaurants in major effected cities reopen.
Cant ask for much more from management.
AS1 Price at posting:
14.0¢ Sentiment: Buy Disclosure: Not Held
