The below is from the full report and I am concerned about the last paragraph, especially as the US Dollar is likely to weaken over the next 6-12 months against the Australian Dollar.
The Group acknowledges the inherent uncertainty in their earnings forecast, which includes assumptions such as:
• Increased customer base, ranging of products, number of stores for each product in the USA and achieving projected sales volumes in FY25 with the smaller tin sizes.
• Attainment of the permanent U.S. Food and Drug Administration approval in FY25 to continue operating in the USA and managing expenses to obtain it. The Group is currently operating under discretionary approval until permanent approval is expected to be obtained in FY25.
• Continuing the revenue growth in China through the success of the CBEC and O2O strategy.
• Continuing improvement of the working capital position through detailed demand planning and forecasting.
• Reduced operating expenses through stringent expense management, and cost optimisation and estimated expenses relating to litigation matters.
Due to the uncertainty surrounding the above matters, a material uncertainty exists which may cast doubt on the Group’s ability to continue as a going concern and therefore whether it may be able to realise its assets and discharge its liabilities in the normal course of business.
BUB Price at posting:
12.5¢ Sentiment: Hold 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)