I am a bit disappointed in the % changes.
Revenue up 50%, operating EBITDA only up 11% and NPAT up 4.7%. I was expecting a higher proportion of the revenue to go to the bottom line. This has not occurred. Now, I know that the De Costi story still has to play out, and it was a low margin business that was acquired, but I did not realise that it would impact on the results so much.
Also, they spent more cash than they generated by $9m and then they are paying out a dividend.
I think that they are trying to put a good spin on it, but the results (as indicated by the % changes) indicate that they have not performed as well as expected.
The other bit of news is that the valuation of the biomass was reduced as they have reduced their forecast of the selling price.
It is an OK result, but on the report card the comment would be "Could do better"
HT1
(mind you - at this share price - I suspect all the bad news is factored in)
TGR Price at posting:
$4.05 Sentiment: Hold Disclosure: Held
