BFC 0.00% 0.3¢ beston global food company limited

PRODUCING AND SELLING PRODUCT PLUS NO DEBT, page-2

  1. 63 Posts.
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    It may well be but at least do some basic research regarding debt. This is from their AGM presentation:

    • As an immediate measure to secure and fund additional milk supplies, BFC will employ debt funds, by using the dairy farms as security
    • BFC currently has no debt. The returns from the additional milk will far exceed the cost of servicing the newly acquired debt
    • The gearing level will be less than 25% and provide for prudent capital management of BFC’s balance sheet

    It's the right move as manufacturing cheese is capital hungry - the maturation process and then customer payment terms far exceed what you get from the milk supplier. Combine that with building a mozzarella plant and this was going to be necessary unless significant profits materialised immediately, which Dashang crippled by reneging on their deal.
 
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