Terrible report with lots of false excuses like the coronavirus. They really made a big mistake buying the Braeside manufacturing facility (previously Catalent and before that Cardinal Health) and didn't do their due diligence properly. Catalent were one of the biggest suppliers of gelcap and tablets to the healthcare sector and that plant was geared for volume. As a person with inside knowledge, I know that plant quite well and have been there on many occasions. They would set up production lines then product huge volumes of product and get it packed off for different customers. Now they have the same overhead and only one customer being BKL, so basically they are loosing money hand over fist with small expensive production runs, as a lot of the expense is setting up the line, which takes the same time, whether it is a small or large run. In my opinion they should just admit they have made a massive mistake and sell catalent to a buyer who can serve the whole market as a contract manufacturer. No one will want to get product manufactured by BKL as they are a competitor to them in the market. Also allocating $6m to change over labels is a complete joke, it really shouldn't cost much at all and companies should be updating their packaging every year or two to keep their product looking interesting regardless. I am so surprised that the share price isn't around $35, as these problems are not going away for a while.
BKL Price at posting:
$70.01 Sentiment: None Disclosure: Not Held
