I'm more interested in him being able to offer a "Practical solution" to SML
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SML's introduction to QEX has just begun
Surely they can't snatch failure out of - Annual exports to China jumped 22 percent in April to top $15 billion for the first time, amid growing demand for beef, lamb, logs and dairy products.
So far they have been pretty successful growing revenue from $10 million to $30 million, and now foretasted to hit $60 million, if they keep this up they could possibly hit $100 million next year.
Annual report due next week, I'm expecting $61 million revenue, $3.5 million net profit.
how much would a 10 year agreement with synlait be worth. Seems and elegant, practical solution to SML's woes.
It'd be a great partnership, you have Synlait who makes the product and QEX that transports it all the way to China, they'd just have to sign up a distribution partner in China then they are all good to go. It would mean greater margins for Synlait and QEX would be doing some pretty decent volume too. Such a deal would benefit Synlait more than it would for QEX since they are already signing up big companies like Danone ($83 Billion NZD company), Swisse (Number 1 vitamin and supplement brand in Australia) and Open Country Dairy (2nd largest premium milk powder exporter globally), these contracts have only just started and we won't see the impact till FY 20.
Preliminary unaudited results out
• Revenue increased to $59.4 million, an 89% (or $28 million) increase on FY18
• Gross profit grew 48% to $7.5 million, up from $5.07 million in FY18
• Net profit after tax increased 61% to $1.9 million
• Placement of New Shares raised $2.5 million
• Migration from the NXT market to the main NZX board
• Service agreement signed with SF Express Australia
• Three-year contract signed for free trade zone and bonded warehouse in Shanghai
• Ranked #4 in Deloitte Fast 50 Master of Growth awards • Significant new distribution agreements signed
• Registration with the International Air Transport Association
And the SP dials back ....tough crowd to please?
However, I am well positioned to ride this horse when it gathers some steam