Potential catalysts, page-22

Not being profitable is simple assumption based on the announcements and financials released. Everyone has access to this information.

It may have been profitable in the past, who knows. But what I do know is that company's don't write down assets that are performing to expectation. Nor do they close down divisions that are growing and profitable. If they are worth anything, then those divisions get sold.

Based on the reported growth numbers the D2C division clearly worked incredibly well for Kaddy in the past when the country was locked down due to Covid. The world has changed a lot since then. In fact sales for almost every online retail business have pulled back. I'm guessing the wineries who were the predominant user of the D2C service have felt this too.

Freight costs, fuel levies and labour costs have all also increased. Logistics is a very tight margin game. If volumes drop and costs increase then they can become marginal or unprofitable very quickly. What was once profitable may longer be.