guess i am guilty of of not reading up sufficient previous announcements.......... all of the above information has been around for a few months now but with lot more detail than than is on this thread .ie its current strategies and strategies into the future ......the market has had plenty of time to digest this information and make up its own mind ............tassal actually withdrew its tender to coles for the financial year 2017 for strategic reasons explained below, but its current contract continues until end of june...................i will post a copy of just one announcement which i believe gives a great deal of confidence in its ability to to continue its earning growth pattern.......
7 April 2016 The Manager Listings ASX Market Announcements Australian Securities Exchange Level 4, Exchange Centre 20 Bridge Street Sydney NSW 2000 Via e-lodgement Tassal rebalances sales channels to optimise returns Tassal Group Limited (ASX: TGR) today announced that in line with its strategy to rebalance sales channels and optimise returns, it has decided to withdraw its tenders for two domestic retail supply contracts – Coles’ fresh Salmon Deli business and fresh Salmon to Simplot for supply of packaged Salmon to Coles. The supply contracts for Coles fresh Salmon and Simplot will finish on 4 June 2016 and 30 June 2016, respectively. This decision was taken to ensure Tassal continues to generate sustainable returns moving forward in light of warmer water impacting growing conditions for near term supply. As Tassal is rebalancing its sales channels to maintain sustainable returns, this decision is not expected to impact revenues and earnings going forward. Tassal has had a long and enduring relationship with Coles. This relationship is not expected to change, and Tassal will continue to supply a wide range of other Salmon and Seafood products to Coles. The domestic wholesale salmon market has had, and continues to have, supply restrictions and increased pricing to ensure impacts from a warm summer can be mitigated. This provides Tassal with the opportunity to redirect salmon production into other domestic markets to optimise returns following completion of the above contracts. The export market continues to present favourable conditions given supply shortages globally that are expected to continue for the next two years, with increased pricing and a low Australian dollar. Tassal will continue to utilise the export market to balance sales volumes in line with optimising shareholder returns.
TGR Price at posting:
$4.12 Sentiment: Buy Disclosure: Held
