First half EBITDA for 2017 will be down substantially on last year on retail weakness, …. although FY 2017 is expected to be up on last year.
Who’s to say there won’t be further weakness in the 2nd half of 2017, … sure some of the 2nd half improvement will come from cost reductions etc … but any further weakness in sales or currency may erode those savings and 2017 with a new President in Amercia …. well …
Also looking at 1H and 2H earnings over the last 3 years they has always been a major weighting (like 2/3s) towards the 1H so any weakness in the first half isn’t good, … although BBG has stated that they are looking at smoothing the differences between 1H and 2H earnings.
Also if they do achieve $60-65m in FY 2017 EBITDA this is still likely to be eroded by Depreciation and Interest costs which for FY 2016 were $65.7m so BBG potentially still wouldn’t report a profit for FY2017.
Still I think they are progressing in the right direction, getting the back end in shape, focusing on core brands, but I see a few more years yet before real improvement, and there’s still all that debt which will need to be paid back, which potentially in coming years may mean no dividends or a possible capital raising or issue of shares in some form.
BBG Price at posting:
$1.19 Sentiment: None Disclosure: Not Held
