I recall this was discussed at the AGM or might have been at the EGM, but basically the new outsourcing arrangements allow the company to reduce the sell price of ZinClear (to attract more customers and compete more aggressively with chemical UV filters - attracting higher volume mainstream brands - a beautiful thing) without any margin erosion. I'm sure they actually boasted coming out with even more profit despite a sell price drop. Like @kearneymaurice suggests, once the outsourcing manufacturing is in full swing this will really be an even stronger business and one that is much easier to value long term future earnings due to a simpler variable cost of operation. (Eg. $20 profit per kilo produced, and limited to no capital requirements.)
It's one of those businesses where if I could own the whole thing, I bloody would. Too bad ol' Lev and Brian won't sell me their 50% any time soon!
ANO Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
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