Australia's largest stock trading and investment forum Australia's #1 stock forum

YOW

Click for more information

0.00%

2.3¢ yowie group ltd

Think you're not too far off. Company is forcasting break even...

First 79 Last

Share
Profile

Follow
humble69

2,319 Posts.

17

30/05/17

16:47

Post #: 24997065
Share

Originally posted by BertySmythe ↑

In the half year to 31 Dec 2016 Yowie had sales of $9,6m, cost of sales $4.3m (46%) and fixed costs $9.5m and a loss (excluding fx adj's) of $4.2m.

If we just doubled the half (just for this simple calc to get an annual total) then full year sales are $19,2m, fixed costs $19.0 and loss of $8.4m.

Therefore at a 46% margin (yes yes, it may improve) we need an additional $18.2m of sales to generate $8.4m margin just to break even. That's almost double the sales just to stop making a loss! Or total sales need to be $37.4m ($19.0 + $18.2).

So sales do need to grow really significantly and then much more so to generate a profit and underpin company valuation. Admin costs do appear high but IMO realistically they are usually not able to be cut to any great extent.

So it seems sales need to double, but really triple to make this ship properly sail. This may be possible - but I don't have a means or knowledge to rationally evaluate that.

Please feel free to correct/comment on any of my back of the envelope assumptions and calcs.

Expand

Think you're not too far off. Company is forcasting break even at the NPAT level next year on 70% sales growth.

YOW Price at posting: 38.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

TAT

Tartana Minerals firms up producer status with recent 150tn shipment of copper sulphate to the NT

GMD

Genesis set for higher gold production in FY25 and earlier mill start

EMD

Emyria jumps 10% on 'interim' success treating PTSD patients with MDMA

BAS

Bass completes successful testing work at Kiwi-1, showing higher-than-expected condensate yields

RDN

Raiden Resources jumps 11% as Andover South drilling to kick off with PoW on Minister's desk

There are more pages in this discussion • 70 more messages in this thread...

First 79 Last

Add YOW (ASX) to my watchlist

(20min delay)
Last 2.3¢		Change 0.000(0.00%)		Mkt cap ! $5.275M

Open	High	Low	Value	Volume
2.3¢	2.3¢	2.3¢	$15	642

Buyers (Bids)

No.	Vol.	Price($)
5	145669	2.3¢

Sellers (Offers)

Price($)	Vol.	No.
2.7¢	5	1

View Market Depth

No.	Vol.	Price($)
5	145669	0.023
1	45499	0.022
1	95383	0.021
1	350000	0.015
1	100000	0.010

Price($)	Vol.	No.
0.027	5	1
0.028	144879	3
0.029	156545	1
0.030	102764	5
0.032	187876	1

Last trade - 13.43pm 02/09/2024 (20 minute delay)

YOW (ASX) Chart