Q3: Record Quarter on Expanding Margins w Boosted Guidance… Across the board all numbers look real strong, revenues up 122% YoY on expanding gross margins (+2.1%), EBITDA margins up to 10.4%, Large cash royalty payment and a big boost in revenue guidance.
With the Specialty Ingredient and Biodroga business lines growing at an organic growth rate of 20%+ the runway for growth into 2017 and beyond looks real positive from its core business if you compound this core growth with the alternative revenue streams from feed ingredient and MaxSimil business lines you could start imagining a CAGR north of 20% for the foreseeable future.
Looking at future analyst estimates fiscal year for only 56.9M or 16% YoY growth may look real low if they continue this year’s execution into 2017.
Personally, I like the potential for accelerated export growth into the Asia region in 2017 and beyond for many Canadian based exporters as tensions build between US and China (and other Asian nations) with border adjustment taxes proposals making the export of Canadian goods look more attractive.
Strong Q across the board, if you could ever get more of a growth multiple to reflect the new trajectory on the businessit could be north of 2 in a hurry.
LONG