Kristy Carr speaks with Tom Piotrowski from Commsec, page-39

guys based on revenue figures A2 vs BUB, A2 is 6 to 7 years ahead of BUBs. let's not get ahead of our selves and think Bub will reach a company MCAP of 9 billion in the next 2 years.

don't get me wrong I believe in the company and that it will maintain a fast growth pace.

I also think long term Bub will be bigger than A2 in IF sales because of the brand strategy, in that bub captures the full range of products and can attract IF sales through consumer loyalty in its other products.

last point, I think this will be controversial - bub is actually selling a wider range of products and as a result has much higher operating costs. it could be said that BUB is set up for a larger scale operation say 2-3B revenue P.A for the scale of these costs to make sense. this is not an unrealistic share of the total market given the range of things they sell.

The Opposing view on operating costs, it could also be a sign of poorer management of operations and margins, inefficiency in the business and present risks with BUB being too wide spread, with not enough revenue potential in each segment, such as food. like, What's the total market potential on baby pouch food, does anyone know?

SAUCY