One reason was additional COVID-19 costs. If alarmist politicians and catastrophist, unelected health advisers mandate huge isolation periods for so-called 'close contacts' re coronavirus, it's going to mean absenteeism skyrockets. That can be disastrous for a factory's production.
And in Victoria especially, but also NSW, restaurants/cafes were often closed due to lockdowns. South Australia still has density limits, so if BGA (the owner of the largest 'cold chain' network in Australia) is supplying such a cafe, BGA's sales will suffer as cafes on high demand days cannot seat as many as used be the case.
The Lion Dairy and Drinks acquisition was always going to take three years to fully integrate. For instance, some dairy factories such as Melbourne's Chelsea may close. (I've not seen an update). So given we're in the medium stage, there are costs to be borne but these shouldn't be in perpetuity.
These situations don't detract from what is a fundamentally good, profitable business that provides us with quality food and beverages.
tessathedog was being realistic, not spruiking.
BGA Price at posting:
$4.95 Sentiment: Hold Disclosure: Held
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