I am not sure how many Chemist warehouse stores there are as I couldn't find that information on their website.. but when you search via store locator by state, it seems like there must be over a hundred of stores nationwide. I'd assume that most of them have limited stock at the moment for obvious reasons (coles and wollies are sold out just like toilet paper) and their hand sanitizer products they currently sell is from more expensive, well established brand Dettol. (this WNB hand sanitizer might be their "homebrand" cheaper options) See picture below for their current options for hand sanitizer products, only 6 products and the biggest packaging is only 200ml and goes for $5.99.
WBN offers bigger, 300ml products, smart name MICRO19 (Covid19 but I am sure you get that), neat design, aussie made, not animal testing and recyclable packaging.. take my money!
So how much profit can they make by delivering products like this to one of the biggest pharmacy chains in Australia, in the middle of world's biggest pandemic of last 100years ??? People panic, everyone wants to stay clean, this will go off shelves faster than dettol as I believe it will be cheaper.
Chemist WH placed its first purchase order valued in excess of $400,000 with discussions underway on future supply requirements.
How many of these products can they get for $400k ? Let's assume $1 per bottle (averaged as there are different sizes). That would mean 400k products to be sold in about 150 stores (guessing number of stores) AND online.. If you go to ANY chemist warehouse shop, they are always packed with people.. These 400k bottles could go within a month, if not earlier... and get ready for another order.. meanwhile I am sure they are working on another potential distributors and if China deal is declared the real thing, this could fly for sure...
regarding current debt, if they manage to get another order soon, perhaps a bigger one, I believe they may get refinance option before their debt is due.
Even if pandemic is over, cleaning and sanitizing products will be wanted for months to come... and USA didn't even hit proper outbreak yet, just wait a week or two to see what panic looks like..
Volume today was massive considering the size of WNB. Definitely great news and trading today reflects that.. If we can get green day on ASX, I don't see why we couldn't see this trading at 0.010. There will be lots of profit takers holding the price down, but I am happy to hold couple of wks to see which way this goes. let's see what happens.. should be interesting to watch..
WNB Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
