Cost of inputs are going up, no doubt about that. What i don't beleive has been fully factored into the declining share price that some of these margin declines may be offset through increased volumes.
DMP provides great value for money to feed a family, in times of inflation, famililes will be looking to the options which provide more value and its the takeaways and restaurants which provide middling offerings which are likely to miss out as their customers look for more value and usually this is usually provided by the large fast food chains which DMP's provides. It happened in the GFC and i'm pretty sure it would happen again.
You could feed a family of 4 for $30-$40 with DMP, Macca's etc. Families might give up the meals from the local takeaway and opt for these options to make their budget stretch further.
It would be interesting to see what the next report shows.
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2 | 48 | 30.690 |
1 | 25 | 30.490 |
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1 | 32 | 29.990 |
Price($) | Vol. | No. |
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29.470 | 242 | 1 |
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