Hello. I just had a closer look at what LYC are doing. It is...

Hello. I just had a closer look at what LYC are doing. It is difficult to exactly know therefore I can only take guesses.

Cost of goods sold (COGS) is exactly what it is; cost of goods sold. Therefore, to look deeper we must examine the cash flow statements but this gets difficult because there are things affecting cashflow such as receivables & payables.

In summary, attempting to reconcile the 1H24 LYC EBITDA with equivalent cash flow (which includes accounting for receivables, payables & inventory changes), the impression is the operating cash outflows (costs) were AUS$25M greater or US$2.46/kg greater than in the EBITDA.

Therefore, while the Profit & Loss Statement shows US$23.42/kg in revenue vs US$15.50/kg in total costs of goods sold, I would probably add another US$2.46/kg to the costs to make the total costs US$17.96/kg.

In short, it appears the NPAT was greater than the cashflow, which means there are production &/or wastage costs in adjusting their product for sale. Its bad when cashflow is less the net profit.