Key takeaways:

1) Quarter revenue of $13 Million, down from $19.7 Million the previous quarter.

2) China direct sales up 26% on pcp - significant slowdown on Q3.  Slowdown blamed on cahnging channel mix dynamics. 

3) Other market sales up 71% on pcp (only 8% of revenue)

4) Infant formula sales up 20% on pcp.  

5) daigou channel constrained due to lack of Chinese tourists and students.  

THIS RESULT IS REALLY DISAPPOINTING, WITH GROWTH SLOWING SIGNIFICANTLY, LITTLE OPERAATIONAL LEVERAGE INDICATED, AND A RISK OF CHANNEL STUFFING. 

IT WILL TAKE A LONG TIME FOR CHINESE TOURISTS AND STUNDETS TO RETURN TO PREVIOUS LEVELS.  I DID NOT REALISE THE BUSINESS WAS SO DEPENDANT ON THIS CHANNEL ( I HAVE NOT SEEN A2M BEING IMPACTED THIS WAY - SUPERMARKET SHELVES REMAIN EMPTY OF A2M PRODUCT). 

THE THESIS IS BROKEN FOR ME - I AM OUT. 

Key takeawys:

• Revenue growth of 67% on pcp. 
• Operating cashflow positive for the first time, with positive op. cashflow of $2.3 M. 
• Cash balance of $36.4M 
• Bubs Infant formula grew 137% over pcp.  
• Adult goat dairy down 30% on pcp, with a focus on the higher margin infant formula segment over the quarter. 
• China sales growth of 104% on pcp, now represents 24% of gross sales. 
• Other markets up 2000% on pcp, and is now 12% of gross sales, driven by significant growth in Vietnam.  
• Ramping up infant formula production / sales as product roll out goes from 200 Woolies stores now, to 700 stores by May.   

Great results, and there appears to be strong momentum going forward, with SE Asia market now a significant growth driver.  

The Woolies store roll out will drive local sales growth short term.   Long term, it is a quesiton of whether is is another cae of channel stuffing (BWX), or sustained demand (A2M).   

 Disc: I hold. 

Key takeaways:

1) Revenue up 37% on pcp.  Driven by strong growth in infant formula, with growth of 77% on pcp. 

2) Gross margins increased to 24%, driven by infant formual gross margins of 41%.  

3) 22% increase in costs on pcp, with marketing costs up 267% on pcp. 

4) Corproate Daigou channel growth strong, at 52% on pcp.  Reporting month on month growth, following increased focus on this channel - Presumably this means growth is accelerating. Strong Daigou sales demand is predicted for H2.  feedback is demand is driven by supply uncertainty caused by COVID-19. 

5) Direct to China sales increased 19% on pcp, however, with infant formula direct China sales doubling on pcp, this is likely to accelerate as infant formual becomes a bigger slice of the direct to China pie.  

6) Significant build up in inventory in anticipation of strong growth thsi calendar year.   

SUMMING UP, GROSS MARGINS ARE INCREASING BY ABOUT 4-6% PA AS THE BUSINESS SCALES.  MARKETING IS CURRENTLY 18% OF SALES, WHICH SHOULD DRIVE CONTINUED REVENUE GROWTH.