I doubt it will get to $6.10 today. Although this update was a disaster, it is not 'the end' for BAL or the Bellamy's brand. The next six months will be transformational, a real test of management and the board, and it can go two ways.
Regarding the $15-$20 mill extra investment in FY17, if it is truely one off, then EBIT margins should jump back above 20% in FY18. The optimistic case would have volumes are revenues growing in FY18, maybe 20-30%. Let's call it 25%, @ EBIT margin 21% = EPS $0.47c. x 20 = $9.42. That is the optimistic scenario.
Pessimistic scenario is flat or declining revenue in 2H17 & into FY18. I.e below $120mill in 2H17 and $240mill in FY18, combined with increased fixed costs and a lower EBIT margin, under 20% = $6 SP.
- Forums
- ASX - By Stock
- BAL
- BAL Bloodbath
BAL Bloodbath, page-112
-
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BAL (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO & Managing Director
Charles Armstrong
CEO & Managing Director
SPONSORED BY The Market Online