excellent report. , page-22

It actually made a pre-tax loss of $1.45m for the half-year. It is of course only adding back the tax benefit that will result from being able to fully utilise previous pre-tax losses that resulted in an after-tax profit.

So okay, it is going to ramp up production to 1.2m cases, but most of this appears to be for the Woollies house brand - dry dock - so I can't imagine margins being that fantastic on this, maybe $4 a case? I'd imagine Woollies are aware of the scale benefits in GRB building a bigger plant, as (a) they have a director on the board, and (b) they guaranteed the ANZ loan. Sounds to me like Woollies driving down price to compete effectively against Tooheys Extra Dry.

Buest guess for year-on-year gross profit is around $6m allowing for higher margins on GRB brands, but at this stage, more research is needed IMHO. Take away net expenses, interest on the ANZ loan, and effective income tax (yes it won't pay any for a while) and adjusted net profit after tax is probably closer to $3m.

Would I pay 11 times after tax earnings for GRB? What troubles me is the fear Woollies can drive down margins at their whim. I'd like to see them split sales figures between dry dock and GRB brands in their reports - they are not doing this as per note 9 of their half year report.