RE: Further increase in gross margin to 38%16 Jul 2024 09:34
Somewhere in the middle, I guess?
The revenue could have been a bit better, then again given the steps taken earlier in the year it could have been a lot worse, steady as she goes as they say.
Very encouraging on the gross profit percentages, which based on a full year set of numbers being in line with expectations at say 38% gives us between $2.3mill & $2.5 mill of gross profit, which is about where we were last year, but I guess that we will have less overall costs (still a few positions not being filled, lower production costs and exchange tailwinds)
Europe does look like a very positive market for us and it looks like we are fully committed here.
“Net unaudited cash and investments as at 30 June 2024 were $8.0 million ($10.0 million at 31 December 2023). Cash use reflected higher finished goods inventories, higher accounts receivable in Europe,”
I still think we will have a facility in Europe in the not to distant future.
Looks very much like there are big expectations that the second half of the year is where we are going to get back on the horse so to speak.
“In addition to improving gross profit margins, the Company is diversifying its revenue base with new accounts and growth from existing accounts. Initial orders were received in the first six months for a new dish detergent application in Europe, a new sustainable leather account, and a new application in mineral processing. As previously disclosed, revenues and volume growth from these new accounts are expected to occur predominantly in H2 2024 and beyond.”
Think that we still need to get a clearer picture as to where we are with Superabsorbents as this will be a total game changer, is it just around the corner or are they still some way off the desired efficacy they are trying to reach? A question for September presentation.
A big hold and add when possible for me as I am still rightly or wrongly a believer in what this company can achieve.
ATB
AJP
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