Originally Posted by
Snoopy
Again there has been a slight shift in the reporting details for FY2014. Profitability figures for South America are no longer quoted. I am always suspicious when detail like this disappears from a report, and ask the question:
"What have management got to hide?"
Note 4 does report the revenues though: down from $NZ118.674m (FY2013) to $NZ110.880m (FY2014). Uruguay and ultimately Brazil has always been the add on with potential. South America is of course small, only 10% of sales and rather less than that in profits, in the grand scheme that is PGW now. But IMO those South American sales figures are a disappointing result. I predict PGW will continue to 'stumble along' in South America, as it has for ten years, with no increase in eps coming from there in FY2015. With the growth engine stalled, that is enough to remove any growth premium for the PGW share price going forwards IMO.