Ann: Trading Update, page-10

Hi all, @Fibonarchery and @finch2 i follow your commentary closely and respect both your respective judgements, a little confused on this one though. Discounting the profit guidance upgrade, for which we don't yet know the source of going through the annual reports from FY13 - FY14, sales revenue grew by 15% to 82m while "material packaging and consumables used" grew by 22% to $65m.

Forgive my ignorance but how is this sustainable? I'm a little unclear on the business model - they repackage electronic items and then provide a portal for retailers in Aus?
Could be that the materials & packaging costs are still over inflated due to previously large number of core products held as inventory, not sure, but if you have any information on this I'd appreciate your thoughts, large revenue numbers and obviously attractive if they can reduce these costs.

Or are they just excelling on the back of every man and their dog wearing a fitbit type device? i've bought 3 of them as presents this year, surely that can't last.

Cheers.