My concern would be that meaningful dividends can't be paid, given the quantum of NPAT, at present and GRb likely won't have much in the way of franking credits for a couple of years at least.
If management does well in executing on their budget the business will generate a lot of free cash flow as there will not be any meaningful capex needed in the medium term.
Management has shown poor capital investment decision making in the past (seen from the large surplus capacity at present). If cash is building up I think it would be better for shareholders to ask management to buy back shares on market and cancel them rather than trying to buy further into the craft beer market by acquiring businesses when the market is already ~5 years into a major growth trend.
GRB Price at posting:
4.8¢ Sentiment: None Disclosure: Not Held
