@ricky_banker, not sure if you were at the last AGM but Jayne let slip that production levels are adjusted so demand can be met but deliberately kept at levels that keep it in scarce supply. She said they monitor all the different channels of sales very, very carefully and make just enough to barely satisfy current demand. They know that thinking there is unlimited demand for your product and ramping up production willy nilly will likely end in tears a la BAL. That's what you get when you have a CEO and BOD who lack experience in big FMCG and are simplistic enough to think the demand will just soak up any levels of supply. It all turned to sh%t pretty quickly for them. Overstocked with product nearing expiry dates forced them to discount the product to shift unsold stock thus angering the Daigous who supported them initially and probably gave A2M a big leg up at the time as I assume a lot them changed their allegiance after getting burnt.
It hammered the SP and cost the CEO and most of the BOD their jobs. Jayne is on another level to BAL's previous CEO. She has extensive experience from her tenure on the WOW board and is no stranger to the cut throat world of FMCG and would never of signed off on such a ill conceived idea to ramp up production so drastically and quickly.
@Upthefog said slow and steady is the way get there. Demand outstrips supply of that there is no question, the trick is to ramp up supply gradually and meet that growing demand without overshooting the mark like BAL disastrously did.
All the building blocks are coming together nicely, new IF plant just about to come online to enable double the current production capacity , new partners in Fonterra to help with new supply and products. Geoff B & Co did a sterling job to get the A2M company to where it is as Jayne said in recent interviews. She was hand picked by her predecessor to take the baton and use her vast experience and skill sets to take the company to the next level which she is showing she has the mettle to do.
Everything is set in place not only to ramp up production but to also increase our rate of growth which will reflect in the SP. I think its very likely that at some stage in the near future are going to catch up and likely exceed the market cap of WOW. Ricky you are overly optimistic we are going to get there a lot sooner than what is likely. Just think of how much time and money , buildings, staff and management head count and logistics it took WOW to get to where it is. It has taken us a long time as well but in reality A2M really got its groove on a year before it listed in OZ so we have a stellar run to be proud of. I think the next 3 or 4 half yearly profit reports will give us a clearer time line as to when some of those beautiful SP projections will come to fruition.
If we can sustain let alone exceed the current rate of growth its likely Jayne will be handing these out to the interviewers to celebrate future profit announcements.....
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