Gillysrooms can I suggest you read the market announcement's made by the company on the 20th and 23rd of March. Both these announcements clearly say that FOD has experienced increased demand and sales of their fresh juice products across its domestic network. Management has done a reasonable job to date informing the market of its sensitivity under COVID-19.
What members here in the forum are interested and would like to hear from the company is the quantum of the additional sales being made. Is it a marginal increase or a significant increase? Is the increase large enough to warrant an earnings upgrade? etc
In regards to your comment on Golden Circle, FOD has always been focussed on fresh juice as its main product line. The company owns very unique and advanced machinery that gives the company a manufacturing advantage in this area. The previous CEO used to make a bigger deal of the intellectual property advantage held by the company, but it seems to be less of a big deal these days. Golden Circle is more heavily processed product and made from concentrates etc. It has a better shelf life, a distinctively different texture, no pulp, and flavour profile. Juices from concentrate are extremely popular in Asian markets but less popular in the West.
You may also be unaware that FOD manufactured Original Juice prior to owning the brand. Therefore the manufacturing, commercial contracts and logistics synergies were already in place.
FOD has been experimenting with cold pressing juice products for export that holds a longer shelf life and is more suited to Asian palettes. To date, management has not released export sales data. The assumption, therefore, would have to be made that export sales are negligible compared to the domestic business. In my opinion, I believe that FOD exports a small number of juice products to China in an attempt to brand itself as a company with a China access/distribution network. To date, FOD's China story seems more like a fantasy.
FOD Price at posting:
6.7¢ Sentiment: Hold Disclosure: Held
(20min delay)