Big Daigous went direct to A2M, rather through pharmacies, thereby most sales were bypassed pharmacy channels. This explains the increase in margins as A2M could charge higher margins to Daigous knowing that they will charge even higher prices to Chinese consumers (on the back that more expensive = must be good)
Aptimal probably did the same thing... BAL has always said that Australian mums comes first and meaning they continue to push the retail distribution channels, giving them priority. They also cut their prices to compete with daigous margins in order go Direct to Consumer.
For previous shareholder / trader like me, I personally wouldn't be giving priority on local channel over another. Most important is push supply on higher margins first channels. If Chinese customers wants to buy at higher prices - bring them on, even if this pushes aussie parents behind the queue.
Its called "Show me the Money!!"
This is why you see A2M's stock are no longer on shelf. It is best to divert them to higher margins channels first, and drip feed the local shelves so that you don't lose shelf space.
BAL management needs to get out of Tassie more
BAL Price at posting:
$6.49 Sentiment: Sell Disclosure: Not Held
