RE:RE:RE:Organic growth vs inorganic growth Thanks TJ,
I'm a bit puzzled by the following statistics on Page 6 the MD&A report.
- the Company now supports 1,900 customers and 5,000 + locations across North America
- the Company added 53 new customers and 123 locations in Q2 through organic sales
The new store numbers would seem to broadly equate to the 8% Sales Growth range reported. But if these are
before deducting churn of ( say 190/4 ) 47 customers, then we really are looking at a situation closer to running to stand still.
The more I think about it, a key question is whether Steve and Ackroo management have the appetite and the patience for this "forced pivot" into an exclusively organic growth strategy over the next 2-3 years. All his pronouncements in recent months suggest he is bridling against this aspect of pulling into the slower growth lane. If the departing CFO was hired in 2021 with an acquisition focus, this forced pivot might also have contributed to his leaving.
Steve hinted at the end of a recent presentation that the company could be an acquisition target.
He may prefer to ride out this market for some degree of upturn, but, if so, he needs to guard against further company and market headwinds in the interim.