Post by
DeanEdmonton on Feb 09, 2023 11:39am
Mix of Good and Bad in This Quarters Earnings $5.82
The good news, Sugar Volume is up considerably and Maple Sugar sales stayed reasonably close to previous volumes. On the not so good side, gross margins slipped again and both EBITA and Net Income are lower, despite the higher sales volume and protectionist pricing regimes in Canada. Selling more product and making less money is not a long term winning combination. The vaunted expansion has little appeal if it means even more volume but yet again lower net income. The company needs to work on its cost structure as it is not a price maker, does not produce a significant amount of the Canadian Sugar sales and thus has no pricing power in the market.