Just more of the same. Depletion of assets, without reducing liabilities. It cannot go on forever.
Also, treat the cash receipts with care. Based on what DM told the market previously in the Dec Q, payment terms were extended at that time as part of the holiday period. The expectation is these would now be reduced to "normal" timeframes. This would result in a period of cash receipts being artificially high by collecting both 90-day and 60-day term receipts at the same time.
At what level does DM consider the inventory to be normalised? Because when it reaches that level BUD will need to increase manufacturing costs by around $500k per month to maintain constant inventory. This cost will come without any uplift in revenue because sales will remain the same, or possibly continue falling like they are now. So the cash burn resumes.
BUD Price at posting:
0.7¢ Sentiment: Sell Disclosure: Not Held
