Iry.
You calculation does not allow that GRB cancelled ~-100 mill shares bought back from
Woolworths.
So the figures are a bit more favourable than your calculation.
Around 860 mill shares on issue.
But it still is a lot of shares.
So they do need to get their eps up over the next couple of years.
I'm not a big fan of share consolidation to increase shareholder value.
Halve the number of shares......double their value....net result for shareholders ...zero.
Bottom line profits is what ultimately drives up the share price.
As others have said, they need to watch their costs.
But their plant does have excess capacity, so they can grow volumes without
corresponding cost increases in this area.
Lower unit production cost= better profit margins.
Having won
"Beer of he Year" with Little Dove, ........their profile is raised.
And together with their other "Own Brands",
GRB is in a good space .....the increasingly popular craft beer market.
And their business plan is to expand further into this market.
So it all looks pretty positive to me, and I can see their share price continuing to move higher.
And there is always the possibility of being taken over by one of the major players down the track.
Cheers
bendigo
GRB Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
