Good pick up. I've got to say I've been surprised/disappointed by the company's balance sheet. I thought it was going to be in great shape after they exited the ginger business but it's nowhere near as sound as I thought it'd be, even after the capital raising.
So what is going on with their macadamia inventories?
A couple of years ago they were burning cash to build up them up.
[Source: Annual report, 2020]
Now they've written them down by almost $10m.
At the same time they've been dumping macadamias on industrial customers (as ingredients), presumably at lower margin than retail.
More perplexing still, they now say they're facing a nut shortage to the extent that they're having to source macadamias from Africa and elsewhere.
It looks to me as though there has been a major stuff-up with their inventory management. Let's hope the problems are fixed and that it's onwards and upwards from here.
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Good pick up. I've got to say I've been surprised/disappointed...
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