Unsurprisingly, Covid-19 hasn't had a big impact as most revenue still domestic. Their approach to upsizing the fish is already paying off in terms of significantly greater margins and +12% NPAT. Really impressive I reckon, particularly considering the trading conditions at the moment.
The big positive in the results is the prawns though. Met the expected tonnage which was a big increase (x5), and still expecting much more growth (x10) over the coming years. Despite ROIC dropping a bit (which is concerning that it went below 10%), the future is pretty bright in terms of consistent growth. To be able to pay 4% dividend yield and to have massive investment in future growth opportunities is pretty unbelievable in this market condition.
Market seems happy, +5%. Just kicking myself didn't top-up the other day when dropped again to $3.60, may not see that again.
TGR Price at posting:
$3.87 Sentiment: Buy Disclosure: Held
