Your argument is flawed. The marketing spend is to target new customers/markets, for a single expense they get ongoing sales that pay off many times over. To maintain or even increase sales organically would happen with little or no marketing spend, the high level of marketing is to grow sales aggressively. The marketing spend is similar to the biomass investment, an investment for future sales.
If they were happy to just maintain the sales at current levels they would not need to invest at this level in biomass & marketing, would generate cash now & have little or no debt.
They are not drawing down on debt to fund operations, they are drawing down debt to invest in future sales.
CSS is the market leader in Australia & Asia due to the quality of their product. Your comments infer that they are just selling a commodity product when they are not they are selling a differentiated, high quality product. You're another one who doesn't read the commentaries in the reports. Chefs love this product due to it's taste & quality, that's why they have such a high conversion rate.
CSS Price at posting:
96.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)