Firstly this is the most solid news that they have ever...

Firstly this is the most solid news that they have ever delivered - the overseas supply contracts had no substance. This is definitely a step in the right direction for spinning this segment off to a third party.

The warning was in there for 2017/18 - the new supply agreement won't kick in until August 2018 which is 2018/19.

The margin is probably pretty skinny but at these volumes it would likely be going out in bulk so margin will naturally be tight. Assume 8 litres of milk for 1 kg of mozzarella (maybe better with a new plant). Beston would be paying over 50c a litre for milk so say $4.00 per kg of mozzarella. Add in labour, overheads, transport etc and the margin starts to get pretty tight, but as Sammieboy said cash generation is probably a big driver.