Crap quarterly

Not a good quarterly guys: lower sales, revenues and a softer outlook. Cash is still flowing out. Sales are down on the period prior to the new brewhouse in 2014 - thats extremely disappointing as it was a capital-intensive expansion that is now not supported by sales.

The new GRB range failed to penetrate the market during the high sales summer period, due to placement and shelving issues - thats a big stuff up and points to poor strategy, planning and execution.

GRB are now encountering issues that are more complicated than expected, in their own words. Sounds like more expertise is needed, and an injection into the management team of clever, experienced staff with expertise with these types of issues. The company is facing big-company challenges, but looks like it has small-company abilities. Even the GRB Facebook site has a lukewarm reception, that defies what you would expect from a $60m market cap professional brewing company and points to the need for a re-think in the engagement process.

Even the investor relations style is defensive - you know a company is not in the A (0r B) team when they try to sneak their quarterly out, after market on a Friday that is the last day of quarterly reporting period. Hence shining a spotlight on the report, here on HC.

Harsh words, but serious money is likely to be lost by investors if GRB keep this up. This was a quarter where GRB was supposed to shine and show the market their brewhouse stuff-up in 2014 was a one-off. Instead this a continuation of the theme. You could see that if there are a few more quarters of crap performance, these guys will be on the radar for private equity or the like, to come in and clean things up, providing the Woolworths stake isn't a spoiler.

Pull the finger out, and if the appropriate skill set is not in current management, bring it in. So far this has been a dud investment.