if you look at the results statement, they talked about customers in the n. hemisphere not re-ordering,
'The business over that reporting period relied primarily on the Northern European sector, specifically our markets in the United Kingdom, Benelux, France and Germany. Each were challenged by high in-market stocks of our products which we expected distribution to sell out and then re-order. The very cold and prolonged spring coupled with a hot dry summer deterred growers from investing in new products and so farmer usage did not pull through enough distributor carry-over stock to trigger re-ordering. However, the decline in sales into the channel masked a small increase in farmer usage year-on-year. Furthermore, management made impressive progress broadening and deepening awareness of the performance of Plant Impact products at the grower level. This is an accumulating asset that we expect will be converted into sales in the coming seasons.'
if this statement is true, it should imply that distributor stocks are relatively low so next years ordering should not be affected by having left over stock. this should help next year's sales; let's hope winter doesn't last as long!!
If that's the case the next Qtr results may dip back to previous levels, the 3rd Qtr (if the Northern Hemisphere revenue isn't recovered) could be at last year's level or worse and this could be repeated in Qtr 4
Hopefully they can recover or rebuild the Northern Hemisphere sales or the whole scenario will have turned on it's head
Effectively if we are both correct in our assumptions this 1st Qtr announcement is a bit of a sweetener for the disappointing annual results but then this could be followed with 3 quarter's of negative news, and hopefully the Southern Hemosphere orders already fulfilled will only cover usage for this season rather than covering the next season too !
I would imagine that the southern hemisphere's orders are largely completed by now. Bayer would have ordered enough to cover customers for the season…they don't want to run out of stock in the middle of a product launch. they have invested a lot of time , people and money in staff and customer training
Hopefully the £738k revenue isn't again covering stock for future periods and this revenue will be repeated over the coming months - this would be a silver lining if that's the case but unfortunately after years of missed targets the temptation is to accept this announcement with a bag of salt !
If these revenues are to be repeated maybe we will see break even finally - hold on this could be a roller coaster 12 months !
Extremely disappointing results but fully expected to be honest after the muted warnings over the last year or so
PI really has no other option but to step up swiftly and start showing the results to go along with its projections - unfortunately this has not happened for a VERY long time indeed and the excuses wore thin some time ago
Quite basically if you take out the 'one-off' £250k revenue and pro-rata the 16 month revenue back to a 12 month period we are looking at a 47% decrease in sales !
Extremely worrying particularly when you consider it appears that the company cannot retain existing and previous business - is this because the products don't actually do what they say on the tin, other competitors have jumped in with their own products, or simply ineffective account management ? Surely if the products are effective they should sell themselves to established contacts !
Granted the weather hasn't been great but a 47% decrease ? Even more worrying is the fact that possibly the previous revenues have been inflated by overstocking at distributor level meaning current and future sales are compromised ! I seem to remember the current BOD making an issue of this with the previous board but it now appears they have slipped down the same route !!!!
"This year's commercial launch has resulted in material sales which are described today in a Q1 2014 trading update, and the full impact will be reflected in the Company's financial results for the six months ending 31 January 2014."
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