I am surprised and relieved that today's announcement has so many positives and no negatives, except ongoing market uncertainty. Among the strongest indicators that MCP's guidance is very conservative:
Top six brands growing at 20% relative to FY19;
Dr LeWinn's performing well in China;
Strong demand, particularly for household essentials;
Significant growth in online channels;
Own e-commerce store;
Gearing down to 13%;
Reduced discounting and improved margins
Launch of hand sanitiser, with $9M of confirmed orders.
With 20% sales growth, new products, lower debt servicing costs and improved margins, how can underlying pre-tax profit not be much higher than the guided 10%?
MCP Price at posting:
$2.66 Sentiment: Buy Disclosure: Held
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