RE: VOX markets13 Jun 2018 15:19
Thank Belgrano - Probi example is an important one, because the business model OPTI share is almost identical. There is one significant advantage to OPTI with it's approach, which is important. Probi has it's own manufacturing facilities, as well as contrasting out to partners where capacity is needed. This reduces the margins to Probi, which causes fluctuations in PLC costs. OPTI have a 50/50 split production profit share, so visible PLC costs, no maintenance of production facility costs associated with the running and maintaining. Another important aspect, through the SACCO partnership, OPTI generate an addition 33% improvement on margins, which were already very competitive.
The other major difference between Probi and OPTI....OPTI have a significant geographical diversity over the healthy living food/beverage tag than Probi, and indeed many other companies, particularly in the dairy space.