RE: GM Q&A4 Nov 2021 20:48
Thanks BB for submitting the questions. Just a few thoughts ...
If we agree that CHILL received payment of $2 m in first quarter to July, then $.5 m next quarter to September 21 then that is a 75% drop in demand for whatever reason! Likely to be distribution, but we do not know for sure that there is also an issue with take up of smokes in shops either.
Q7 I’m least impressed with these answers
“As mentioned in response to a question at the Group’s AGM in September 2021, rollout information is generally market-sensitive and so must be provided via the RNS. “
So? after it being requested in the September AGM why not include the number of current outlets in the business update RNS dated 3rd November 21 - it is relevant. They were requested to do this, they had the perfect opportunity and decided not to do it, even when asked too at the AGM. They obviously prefer to keep this from the market. Its interesting that all they promised us, and all we spoke about for six months was progress of outlets - now that door is shut - lesson learned.
The only RNSd milestone published in Feb 21 is the 10,000 outlets by May 22. So far a big **** up, but somehow they feel that they can still meet this target - just 7 months away.
So a big question is how can they service an extra 1000 new outlets a month, continue to service exiting outlets,so that in May 22 they are servicing 10, 000 outlets..when they have admitted ( for whatever reason) they have failed to support sales in their existing 2,500 outlets , which have dropped 75% this last quarter.
They have reported that sales will now become more lumpy, unpredictable in the future, but they still need to meet the seven month target of May 22- so it is either an average of 1000 new stores a month - or a 500 on month, 1500 the next but whichever way they do this they are going to need distributors.
Any ideas how they can service 1000 new outlets a month ( variable) for the next seven months .....what alternatives are available? If its a false target then its a milestone for the market, just to keep credibility, and they will have to deal with it when the time comes..kicking it down the road.
I have no idea how they can manage this after what they have said about the difficulty's in US - so does anyone know of other ways of distributing shops