I understood from their prior aspirational goal (pre covid) of...

I understood from their prior aspirational goal (pre covid) of $30m revenue that this target was because of buying by their US distributor (no doubt signing up new brands/increasing the % of zinc products etc). i.e management have very little visibility of end use demand as it's all sold through distributors etc.

I suspect as well, given the well known bottlenecks/supply issues previously, that Deveroux probably was overordering to ensure they had an adequate supply on hand (remember they used to have to get it air freighted in).

Holy grail of demand destruction when sales plummeted due to COVID + Deveroux had excess supply + brands didn't order new sunscreen stock and looked to run down their existing stocks. No doubt this is why Deveroux had to enter into a payment plan as well.

However, fast forward a year and the sunscreen stocks are running low/hitting expiry, the distributor has presumably run down their stocks, and ANO have spent the intervening time building up production capacity + our own stocks to meet any demand surge.

I'd say job well done. And we did all this with a still profitable 1st half.

Now we have the production capacity + stocks available + new formulations + new dispersions so can really hit the ground running to continue to grow our market share/promote new distribution deals