They are doing the right things, it's just they've started them so late. This should have been a few years ago that they sync'd the business up and got a tighter grasp on the product costings & profitability.
We use one of their dairy SKUs which they had noted was selling at a loss, that they jacked up the price over 60% middle of last year. Unfortunately dramatic increases due to their poor costings can really risk pushing business away from them, so there's only so much they can do with the elevated input costs.
It sounds like they are open to dumping divisions:
The issue is their overheads are too high that they can't dump the milk or chicken, as they need the revenue. Unfortunately there isn't huge room for growth in either division in Tasmania, so it's just about hitting the revenue with a reasonable margin. On the flip-side, cheese/wasabi have much higher growth potentials but the revenue is still small, but they should be profitable, so you're hurting the growth of the business by dumping them.
I think they ask for some more cash from Jan Cameron in the next few months, or a very painful capital raising. The brands are quite large in Tasmania so I just see them really cutting it fine but managing to scrape through. I believe Jan is quite committed to making this work, so she'll hopefully float some more cash their way.
