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schura

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07/12/21

16:22

Post #: 58134927
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Originally posted by Sammieboy: ↑

Schura,

Good details and you could be right if BFC last long enough.

At 6.7c NAB must be asking questions.

Have a close look at Mozzarella (refer my prevoius posts NOTHING HAS CHANGED) - BFC milk cost is approx 55c litre. Approx 10000litres = 1000kgs Mozzarella. Milk in Mozzarella therefore is $5.50kg ADD Processing costs only say $0.50kg. Factory cost = $6kg. BFC looks to be selling Mozzarella at average around $5.50kg. BFC annual Mozzarella production at 150ml litres milk is approx 14m kgs. So loss V Factory cost = $0.50kg = $7m pa.
Some of the losss on Mozzarella will be offset against profits on Cream and Whey.
So BFC takes in milk to get lactoferrins but lactoferrin sales are not running to expected levels (think 20-24 tonnes pa ex various BFC documents). Effect is keep making lactoferrins and add to Stocks which in turn needs more Working Capital.

BFC looks to be a price taker in all products. Gone is the price maker (assume basis of the Sexton/Hicks Lactoferrins plan) role because competition is fierce in all markets where BFC competes.

BFC is fighting for survival yet from the AGM and recent Business Update I can find no reference to cost cutting.

Back to Church. All shareholders welcome

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But it's not just Mozzarella - the figure that counts is not the revenue from Mozzarella, but the revenue per litre of milk (currently reported at 77 c per litre, but projected to grow to 1.05 - 1.17 c per litre.
Feel free to question and explore those revenue numbers, but suggesting that BFC is making mozzarella at a loss is simply misleading and wrong. They are not paying 55c per litre of milk to make mozzarella - they are paying 55c per litre of milk to make lactoferrin, cream, butter, whey powder and mozzarella.
It's revenue (total - not just from mozzarella) per litre of milk that is the key metric.

BFC Price at posting: 6.8¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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