Ann: Trading update, page-2

Compared to Q2 FY21 (i.e. the quarter ended 31 December 2020), HwB orders are up 13 per cent, and more than that compared to Q2 FY20.

This is OK, though did PTL buy HwB at effectively the top of a hamper buying spree period during COVID-19 lockdowns?

The "growth" in sales overall (i.e. cleaning products plus HwB) is negative when CPI is taken into account, but again, given PTL operates in the household and to a smaller extent commercial and industrial cleaning products space, we should recall that when lockdowns were enforced, consumers had hygiene very much front and centre.

Now that we are "free", it's not shopper practice to rush to WOW or MTS' IGAs and buy up big on cleaning products.

It concerns me that White King at WOW is generally on the bottom shelf, but perhaps PTL (wisely?) refuses to pay outrageous shelf placement fees. Its popular toilet gel is on special at WOW this week "half price" at A$2.80: I bought some today for a relative.

PTL has previously commented it wanted to reduce this sort of deep discounting. From what I've observed, it's been successful in convincing clients like WOW to increase retail prices so one assumes PTL is receiving a higher price when it sells wholesale to supermarkets and other retailers like Chemist Warehouse.

I was surprised that PTL partly blames increased freight costs as container shipping costs have reduced in the past few months, although they were extremely elevated.

Nonetheless, the business remains profitable, lacks net debt, has a market leader in White King that as another 'HC' contributor stated 'is worth A$50 million' and may well be successful with cost reduction strategies.

Unlike big noters like QAN (shocking company and "investment"), PTL is paying twice yearly dividends so what's not to like if you are (unlike me) focused on these?

It's just entering a stagnant patch and perhaps needs to consider whether it ought make another accretive acquisition if prices for such businesses come down during the alleged 2023 yet to arrive recession.