@TransversalThe funny thing about your chart is that it appears...

@Transversal
The funny thing about your chart is that it appears as if the gross profit growth is being induced by Covid. But this is not the only thing that has happened.

Since 2016, the topline revenue has grown 50%, which has allowed a lot of the other things to come to fruition.
- this has predominantly been through the duracell and procell distribution agreements (+ pears). So fundamentally, diversifying from branded products to also having distribution. This year, they have significantly expanded their distribution channels, and given the success they have already demonstrated with their current partners (and the fundamental difficulties that Covid entails), this is a very significant advantage. Of note, they explicitly state how they are managing some of the challenges including what sounds like a monopoly freight provider in Shepparton and the intense focus on extracting every ounce of return for every dollar spent at operational, marketing levels etc.
- They have been through a pretty heavy capex spending cycle and we can see that running off now with new capex less than the D&A, which translates directly into FCF for current shareholders.
- There has been a complete board refresh- this is now Charlie's company. Interestingly, the current chair seems to have departed other directorships to (Wingara if I recall correctly), to ? devote more time to Pental.
- the debt facility is being revised to a new 4 year term- 5m at 2% currently. Hopefully the discussions around M&A mean that they can get chea debt to completely fund profitable M&A that adds strategic value where they are missing.
- of note, they are finally putting Aussie made front and centre of all new packaging. There has been distinct consumer preference changes for local for the domestic market and hopefully, Australian brands can command a premium overseas by resonating with quality.
- they are very well hedged to currency risk.

Overall, there is a lot of scope for very significant growth given the tailwinds that are currently present and are likely for at least the next 6-12 months. It remains to be seen to what extent Charlie and the team can capitalise- but the speed of production on the sanitisers and new distribution agreements suggest that they are working very hard. Of note- I personally thought the new country life packaging looks much better, as do the new white king products, so perhaps they are improving on that end as well (although I am pretty doubtful that my tastes are discerning by any stretch of the imagination!). Still an undemanding multiple- with the presence of fairly seasoned management with a history of good performance under difficult circumstances, I think the opportunity is there for the taking under more favourable circumstances- hopefully they can continue to execute.