Summary of the Quarterly Receipts from customers grew over the...

Summary of the Quarterly

Receipts from customers grew over the period and were greater than the prior quarter which had Christmas and New year sales. its not easy to disect the prior Q2 to Q3 sales as there was 2 x aquisitions of the plant based food businesses last year. but, id suggest that is a strong result and from what the Linkedin and commentary in the update it sounds like that has come from strong sales of Cashew Creamery ice creams going into WW and locally. keep it coming.

but the issues around costs are starting to blow out further. PFT is running a negative GP with receipts at 2.8M and cost of producing those goods at 3.6M. This is before corporate and expenses are added. This quarter the blow out was in labour being 51% against a 4Q trailing average of 45%. the previous quarter cost blow out was in Cogs running at 88% against a 4Q trailing average of 73%. so there is some serious issues here if this is ever to be sustainable.

in the prior FY the GP was averaging 105% of sales which is effectively selling for cost, but this year it is averaging 128%. Production costs are close to 30% higher than the sales per item. and there is a distinct change during Q4FY21 and was in full effect by Q1FY22 so changes have been made internally which are consistently costing significantly more to operate. Which is counter intuitive because you would imagine the costs go down as the volumes go up...

So this brings us to the cash burn. Operational cash burn was 1043k but there was an additional 253k in financing and investing activities giving a total burn of 1.3M this quarter. total funding is 5.2M which gives PFT just under 4 quarters to seek more funding through debt or Cap Raise.

1) PFT are selling their product well below cost achieve the growth in sales revenue.
2) The funding will run out within 12 months. expect CR before end of Q2 FY23

Will PFT address their cost issues and will the market continue to support the purchasing of sales growth with investor funds? I wonder what exiting director Sandy Beards view on the costs were?