Ann: FOD ACQUIRES ICONIC AUSTRALIAN BRAND, page-12

I did some work on Heinz/Kraft over the weekend looking for that piece that they no longer valued that would be an asset to FOD.. I looked at Golden Circle as they were the most obvious link however missed it also, a little slack on my end I would say... Anyhow so...

*FOD acquiring OBL for $1.25 million: $1.0 million for the brand, trademarks, and IP as wellas an estimated $0.25million for inventory.


*FOD achieved gross sales revenue of $32 million for FY19, however it expects this to increase byabout 25% in FY20, with revenue guidance of $40 million.

Effectively an outlay of 1.26mil for an increase in revenue in the order of $7 million and gross margin by $2.5 million if you believe the announcement. If these figures/projections are accurate then it is a valuable acquisition/asset for a minor outlay in the scheme of things .. The sinickle side of me questions why only 1.25mill though?

Forecasted revenue FY2020 in the order of 32 - 40mill whilst normally a good hike is a far cry from 50-100 mill as previously projected, they have much ground to make up including market credibility. On the surface looks very good and maybe worth 1 rabbit out of a hat. We shall see.

Good luck to all...
@dwjd