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From the 28th Jan RNS "Gross margins for the Period were approximately 30%. Embedded in these margins were start-up costs and promotions associated with the launch of the Chill and Zoetic online stores. Management anticipates the gross margins will trend towards the previously announced levels of approximately 50%."
Keep looking back Vas & BB2 if you want. I prefer to look forward.
From the 15th Feb RNS "Eric Schrader, formerly of Shrader Oil, commented: "With four generations of experience in the convenience store sector, we have seldom had a brand that, with no in store promotional spend, outsells famous brands with million-dollar marketing budgets. This kind of performance is why so many retail groups are keen to carry the Chill brand, and it's easy to come to the conclusion that we have something special here.""
Hopeful. "And moving back towards the 50% margins previously communicated is also likely...."
Where was it previously communicated that they were achieving 50% margins....?
And moving back towards the 50% margins previously communicated is also likely....
"The Board expects these to grow in-line with manufacturing volumes."
Again - Try to start valuing the company on where it is going, not where it has been....
Hi Billy,
From the bushiness update for ZOE on 29th July stated
"The Group has now received orders for Chill products totalling more than US$2.0 million. This follows previous announcements issued on 17 May 2021 and 1 July 2021 of combined sales totalling US$1.34 million and US$0.72 million respectively. Margins, as previously announced, have been maintained across all product lines and the Board expects these to grow in-line with manufacturing volumes."
So 30% is a safe assumption to make at this time.
https://www.lse.co.uk/rns/ZOE/business-update-7iziiodr6ej9lh3.html
Pecten,
I agree. I also understand that this was in reference to period to 30th Sept 20.
I have ignored the lack of margin for the period to 31st March and would rather wait and see the reported margin for period to 30th Sept 21. That figure will be more relevant.
BB2.
Thanks - it is imperative imo to see the context of figures when quoted
Hi Pecten,
https://zoeticinternational.com/investor-relations/investment-case/
last sentence right at the bottom of Investment Case... A commitment to Shareholder Returns.
I cannot personally find ANY reference to "well north of 50%" not even "50%". If others can post a link that confirms these figures then it would be much appreciated.
BB2
BB2.
Billy 'This is taken from the Co website.
"Gross margins for the period were approximately 30%"
Could you add a link please to the relevant info?
Bluerill,
This is taken from the Co website.
"Gross margins for the period were approximately 30%"
Can I ask where is the info that you are referring to the states "well north of 50%" ???
BB2
That's unfortunate bc I'm not debating anything. Gross margins are not 30%. Regardless, LOOK AT TAAT!!!!! I won't say it again. That company's valuation has a degree of long-term views on everything from the product category's massive potential to a clear forgiveness of what will be TAAT's continued loss-making into the near-to-medium term that, with even a fraction of such ambition accruing to CHLL's valuation, would set the sp on a massive upside move. JUST ON NUMBERS ALREADY RELEASED. PERIOD. Finally, Mar 2021 year-end are M.E.A.N.I.N.G.L.E.S.S for absolutely any analysis of any consequence, except overhead burn rates as I detailed in a previous post which was taken down. Please don't embarrass either of us again by trying to use them for something as serious as the company's gross margins.
Bluerill,
Fully agree that when Mr Market sees another 10m revenue then the current negativity will be replace by positivity..
I do need to pull you up on your margins "well north of 50%" comments. May I respectfully ask where you are getting this info from?
My understanding is that the original 50% comment has been replaced by 30%.
Also, the six moths to 31st March showed zero margin (in fact a trading loss, but admittedly very limited store sales as mainly online sales). It will be interesting what margin is proved in the six months to 30th September, as this will reflect much higher store v online sales).
Good to debate this with you...
BB2.
Simple: when the market can credibly see another 10m coming in the near future and then also being able to understand better how the outlet growth will progress, both through more granular information from the company. Then, armed with this increasing understanding of this massive growth evolution, Mr Market can then run those numbers through its Leading-Product-Innovator-in-Exciting-New-Consumer-Product-Growth-Sector module, using rolling, projected growth of revenues AND profits, where it is able to look at the latter because of the new company's industry-beating gross margins (again: look at TAAT! That company won't be profitable anytime in the near-to-middle future because of massive overhead and admin costs and thus lower gross margins, yet it maintains a massive market cap. Chill meanwhile has stated recently that even at current store growth, 'margins have been maintained' at levels we reckon are well north of 50%). Let's just say that Mr Market does not put 10x multiples on such companies.....I started explaining all this to you this months ago in a different format, while you were trying to tell me that a 10x PE was some kind of 'reasonable' multiple to use to try and value a company like Chill and I was, for the first time, trying to patiently explain to you that that was patently idiotic. I have no such patience anymore so please refer to my comments here on how you simply do not understand this company, how its business is developing nor ESPECIALLY how the equity market works. Now I don't know if that is intentional or not, but I no longer care. Read a book.
Blue. How do you get to this
"We could register NO sales for the rest of the year and 2m+ in sales could support a share price 2-3x where we are now. "
Obviously, we will have further sales but how do you calculate £2m total revenue this year will support a share price today of 80p? can you show me how you compute this.
and mine !!...
any informed speculation?