I added this comment on the SM1 forum but applies equally here...

I added this comment on the SM1 forum but applies equally here too:

Re: the SM1 h/y report
What stands out for me here is that Inventories (unsold materials and stock) at Jan 19 was 37% higher than it was 12 months ago.Finished goods held in particular (relatively speaking) was almost 6 times as much. We know that A2 can sell all the IF they receive in next to no time. So I don't know if there has been a distribution delay, but they need to get the product out and on the shelves!! At least they are positioned ready to meet the forecast increase in sales.And with the second site coming on stream soon(ish), a big positive take for me is reassurance of the certainty that Synlait is ramping up capacity to meet A2's supply needs.

What stands out for me here is that Inventories (unsold materials and stock) at Jan 19 was 37% higher than it was 12 months ago.
Finished goods held in particular (relatively speaking) was almost 6 times as much.
We know that A2 can sell all the IF they receive in next to no time.
So I don't know if there has been a distribution delay, but they need to get the product out and on the shelves!!
At least they are positioned ready to meet the forecast increase in sales.
And with the second site coming on stream soon(ish), a big positive take for me is reassurance of the certainty that Synlait is ramping up capacity to meet A2's supply needs.

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