Good question, first of all Capilano building inventories year after year to leverage any unpredictable natural disaster.
Column 1
Column 2
Column 3
0
Year
Inventories
Growth
1
2013
18,328,709
2
2014
13,736,111
-25.1%
3
2015
23,344,295
69.9%
4
2016
38,792,713
66.2%
As you can see in table Capilano has reserves for almost 4 months of sales which is very good.
Manuka supply at New Zeland dropped 60% as Comvita said 2 days ago. Comvita shares dropped to $6 and bounced to $7.30, more then 20%. Manuka supply in Australia shouldn't have anything in common with New Zeland bad weather. World Manuka price will go up and demand for Manuka is growthing very fast, more and more cosmetic companies across Europe are using Manuka honey in their products(very popular in Germany and UK at the moment).
Column 1
Column 2
Column 3
0
Year
Net profit
Growth
1
2012
2,552,822
2
2013
3,446,604
35.0%
3
2014
4,619,011
34.0%
4
2015
7,845,647
69.9%
5
2016
9,483,463
20.9%
Company delivered net profit growth every year while building inventories at the same time.
CZZ Price at posting:
$15.95 Sentiment: Buy Disclosure: Held