"Normally Wellard passes on fuel price fluctuations through the freight rates paid by its customers. However, with livestock export traders and importers suffering either losses or tight margins themselves, Wellard’s ability to fully pass on increased bunker prices was compromised in H1 FY23 (as well as in H2 FY22), creating an imbalance between increasing costs and stagnating revenue, which impacted the Company’s EBITDA and NPAT."
So, Wellard is a price taker when it comes to freight rates.
A good business this is not.
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