My takeaway is the 5yr plan is working, but slower than expected.
They really should have smashed it over summer, but it was good but not great.
Sales of their brands are up a lot in the new markets, but off a base of virtually zero, so not informative.
Pleasing to see they have the channels etc. in place, but they all add costs, and the volume growth hasn't really arrived yet.
Also surprised contract brewing is still accounting for almost 2/3rds of revenue, and about half of profits.
I expected this to drop away quicker, and I suspect it would have if the proprietary brands were growing faster and they needed volumes.
I'm still wary of the decline in Dan Murphy/BWS volumes put down once again to inventory management issues. I'm not an expert, but it suggests to me they stuffed the channel a year ago with promotions or price cuts and the inventory has been sitting around. Hardly a recipe for developing a desirable brand.
I know these points are a bit critical, and I like the recent board appointment and still have faith they can get it right, but I am surprised there isn't more evidence of change yet.
So I'm holding and looking to accumulate on weakness, after thinking we would be considerably higher by now.
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