Response to a question I asked about increased costs:
Due to seasonality of milk supplies (shoulder pattern with the peak in Nov), milk supplies costs has increased as has conversion costs compared to Q1. Investment was made in bovine IMF ingredients to meet the strong forecasted demands of existing product portfolio and new products to be launched in 2H. As the sales continue to increase, investment in supply chain will increase as well.
Marketing costs included the branding and costs associated with our expanded data-focused partnerships, such as Alibaba and Chemist Warehouse, enabling us to make much greater use of data driven marketing to optimise our return on investment, as we respond to consumer trends and the evolving dynamics of the market. It also included the media investment and brand promotion activities during shopping events in 1H
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- Ann: FY20 Q2 Activities Report and Appendix 4C Cashflow Statement
Ann: FY20 Q2 Activities Report and Appendix 4C Cashflow Statement, page-73
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