While a bad flu season is not welcomed by anyone, it does create tailwinds for some businesses. One business that has been suffering throughout the pandemic and will benefit from colds and flu is Probiotic (PBP).
Probiotic is involved in the development, manufacture, packaging and sale of pharmaceutical and consumer health products. It provides contract manufacturing services solid dose tablets, capsules, tablet coating, blister packing etc. It also offers product analytical and stability testing services.
In their February 22 Outlook and Guidance, Probiotic said “Cough, cold and flu categories are showing further signs of recovery (revenue declined by c. $20m in FY21) and are expected to progressively recover as Covid-19 restrictions are eased and we head into the peak season for supply in 2HY22 and beyond”.
Analysts are forecasting more than 25% annual earnings growth over the next 3 years.
For full disclosure I hold PBP shares IRL and on SM.