Actually looking around my local supermarket,free range products seem to be a massive growth market,at least Tegel are aware of this and going forward should reap the rewards.So yes not a good year but perhaps a glimmer of hope for next year
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Actually looking around my local supermarket,free range products seem to be a massive growth market,at least Tegel are aware of this and going forward should reap the rewards.So yes not a good year but perhaps a glimmer of hope for next year
The disguised the downgrade amongst the one offs... classic.
They are stuffed until the price cycle lifts whenever that will be.
“In a separate incident, there was an ammonia leak at the New Plymouth plant which resulted in inventory losses.”
I assume inventory losses means lots of dead chickens overcome by ammonia gas. Not a nice way to go I would have thought.
This is the fourth (yes, 4th) downgrade according to the NBR - I have lost count myself.
As for disguising, this company thinks it is very smart in trying to hoodwink the market with all kinds of trickery:
1. Referring F17 last year's results as being for "53 weeks" vs 52 weeks in F18 consistently as one excuse for profit drop,
2. Adjusting the F17 results down to 52 weeks so that NPAT is $31.7m vs $34.2m and EBITDA $72m vs $75.6m.
A simple calculation shows the adjusted $31.7m should be $33.6m and EBITDA $74.2m vs $72m.
The NPAT expected in F18 of $25m to $27m = 20% to 26% Downgrade!
This is what the company said at its AGM in June last year :
"So looking at FY18, based on the current market conditions, holding domestic market share, with continued domestic consumption growth of 4-5% and continuing exports,
overall, we expect to deliver an increase in underlying EBITDA from the level at FY17."
"Tegel is a growing business, the company is in great shape and we are excited about our future prospects."
To quote the Colonel of chicken: FCK