With increasing revenue will come increasing costs - wages paid for the 2nd shift each day is probably higher. With inflationary pressures other costs will also increase. JAT have been producing powered formulas for a while now and given the issues faced by the company in the past two years, they should really maximise not just revenue but profits generated - gross profit fell from 40% to 25% - perhaps more focus on increasing levels rather then giving away freebies from promotions.
Increasing revenue is great but increase in profit should result - in this case profit fell substantionally. If revenue increases substantially again this Q - hopefully the profit trend reverses upwards - not down.
Another week or so and we'll know the result of the current cr uptake - soon know whether today's announcement will have any effect on that plus market reaction from now till then.
It would be nice to be free from the $5mill loan but would be nicer if JAT's sp could leave the terrible two's syndrome and follow in the revenue avenue - up.
JAT Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
