Good point, aquasea. You inspired me to look again and closer at the AR.
I wasn't aware that cash had gone up to $26m, 3$m more than last year. That is a positive - in a sense. Having said that, BUB had also received a cash injection of $35m from a CR in that year in question. So, as back of an envelope calculation, the balance sheet position of cash in the bank started at the beginning with $23m, had an inflow of $35m (CR), adding up to $58m. Now, at the end of the reporting period we find $26m in the till. Where has the cash gone?
One obvious position is inventory with an increase of $16m. Inventory has more than doubled from $15m to $31m. It means an enlarged position of ingredients and finshed product is sitting in storage waiting to be sold. So, that is not that good. Perhaps.
I have accounted for $16m inventory. What happened to the rest of the $35m, i.e. $19m (35 -16). I reckon they were spent on running the business
as net cash used in operating activities $22m.
This is a quick analysis, and you will notice that the figures is out by $3m. I believe, that is because of rounding, and other incidental that I have not mentioned and perhaps overlooked.
So, you can see, that there is quite lot of cash walking out the door, or converted into inventory. I think, BUB has considerable pressure to sell product, even if it means to do a JV or similar with someone else. Without another CR, this is not sustainable for even another year.
DYOR - all in good spirit
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