RE:RE:Q2 ReleaseExcellent said. Facts only.
prophetoffacts wrote:
"Light on revenue announcements. What is the driver to improve - capacity? hunting customers? Again dont want to be putting all the eggs in the development basket at the expense of "base" business (kind of like saying I hope its not a strategic decision to limit this business).......Because MARGINS very good. Why arent we driving existing lines of revenue, GEEZ!!!"
That is so woefully ignorant of the basic information that CZO has provided it is as if you just want to complain on Stockhouse as opposed to get an answer. Why not read the Annual Report in the least and think it over.
CZO has been driving increased revenue at a double digit rate for going on a decade and more growth is anticipated. This is a very solid and long term track record of growth. Last year revenue increased 17%. This year it has further improved vs. the first two quarters last year despite the spike in and multi-year high in the Canadian dollar. This is expected to be another growth year.
CZO has moved to a new state-of-the-art facility from an incubator and is now fully consolidated and has recently past inspections from major clients. Both avenanthramide and beta glucan production are now fully in the new state-of-the-art facility and certified. This should drive increased efficiency and competitivenss which can help maintain and win new business. There is also significant new capacity in the new state-of-the-art facility which is can sell. It's hard to get new commitments from clients when you are in a transition to a new facility and still haven't been certified. CZO is now fully certified and in one facility with capacity.
J&J is also expanding geographically and this should drive demand Gilles has noted. In the past CZO has also added new clients itself such as Burt's Bees. Natural plant-based functional products like avenanthramide and beta glucan are also in-line with consumer trends. The market is growing and leading brands, including the world's largest healthcare company(J&J), depend on CZO. CZO has also developed more potent avenanthramide of interest to major clients it says in the Annual Report. It has second and third generation products. It has conducted a clinical trial to support avenanthramide as a neutraceutical. The Annual Report says the data clearly support the use of avenanthramide as a neutraceutical.
CZO has taken the active ingredients in the base business(beta glucan, avenanthraimide) and is trying to prove them out as high value pharmaceutical ingredients in significant markets. The beta glucan pill has almost completed trials as a cholesterol reducer. The avenanthramide pill is about to enter trials as a cardiovascular product. Avenanthramide is also being investigated by the Angiogenesis Foundation as well as beta glucan.
In addition to this there is CZO's masterpiece PGX-YBG.