Good result IMO. Revenue growth has some interesting details, and margins look good albeit higher investment in marketing and distribution. Gross profit margin of around 60%, big fat balance sheet, ROE of around 17% this year. Foundation in place for sustainable long-term growth into Malaysia, Singapore, Vietnam etc.
I've noticed a few shops in Aus that really promote Herbs of Gold as a good option. I wonder is the distribution expense a form of commission paid to participating health food shops etc? At any rate, the brand seems strong and broader investment in the form of marketing hopefully pays off.
With sale of Blackmores to overseas multi-national, seems like opportunity for Australian owned businesses to take market share. Also Blackmores traded at a PE of 30 or so... whereas we're at 11x today's number.
Good divvie, forward momentum, long may it continue.
VLS Price at posting:
$1.93 Sentiment: Buy Disclosure: Held
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