Here is the trend in costs and revenue above. The...

Here is the trend in costs and revenue above. The discontinuation of dairy processing was completed by 4Q23. Since then the business has been more focused on infant formula and nutritionals making this period the most comparable.

Ocean Road Dairies Organic A2 received China export certification in 3Q23 and began ramping up production for towards the end of that year. You can see the increase in manufacturing cost and corresponding increase in revenue from 1Q24 to 2Q24. As I've pointed out, a similar cross over happens from 1Q25 to 2Q25 as production increased, followed by sales of the manufactured product.

Hence what I called cyclical - no increases in revenue without a closely associated increase in production cost, and now that it is an infant formula focused business, this happens in batches and periodically.

The graph below shows total costs vs. revenue since 2023. You can see that costs and revenue have generally come down since 2022 when the company had more dairy farm and dairy processing costs. The company operations has just shrunk since then. It is just producing less and selling less, both under former management and under the new management.

Nowhere have costs been "slashed in half" as you put it. Overall costs have probably actually risen a little since the new management came on in late FY24, and this does not yet account for the costs associated with launching a new product (much like the former management were doing in late FY23 and early FY24.