I believe the potential revenue from the bar/snacking line is massive. As I understand we are operating currently on a single shift basis. FY revenues from a single shift are in excess of $11m pa, and this EXCLUDES any production of our own branded products (Tonik protein bars etc) as these wouldn’t be included in CM revenue.
My understanding that these production lines can work around the clock if required ie 3 x 8 hour shifts. If that’s the case here, then we have a snacking facility that could deliver close to $35m in annual revenues when fully scaled.
The opportunistic acquisition of these distressed assets from AusConfec at a discount to value (and subsequent conversion which was partially grant funded) was a genious move by Management.
HLF Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
