Good Natured Products Inc V.GDNP

RE:RE:All we need in the meantime....

[dileas48s]

I spent some time and looked back at commentary and other sources and did identify that GDNP has indicated in the past that their current infrastructure (including third parties)  is capable of producing roughly $50,000,000 in annual revenue.  That's just a working number as I assume there are a lot of variables like product mix and order cycles that affect what can actually be done versus the output bandwidth available.

Using this figure, compared to Q1 2021 of $8,000,000, we can take a rough estimate and say that they have somewhere between 33-40% more capacity without any additional acquisitions or unannounced upgrades.

What we can't determine from this is whether or not any of the third parties have plans and/or capabilities to expand.  Plus, despite my pizzas/ovens analogy from a while ago maybe GDNP does want to try and move future additional production "in-house".  Time will tell on that one.

I don't doubt that further acqusitions will happen this year, but these numbers suggest that GDNP could meet their revenue growth objectives for this year without any new production capability.

They would definitely need additional manufacturing capability (in-house, or otherwise) for next year to continue their growth objectives as currently defined.

dileas48s wrote:

I sometimes wonder whether, even if a national level client did come to the table, that GDNP currently lacks the additional manufacturing capacity to meet the needs of such a client?  

I have not done enough research to understand, with the addition of IPF and Shepherd, what their capacity is beyond their current revenue capabilities.  Is it 50% more, is it  100% more?  I don't know.

We do know that they are currently upgrading the IPF facility to increase capacity.  I don't know if our other third party producers are doing the same thing, or how much excess capacity they had in the first place.

I think this would be a great area for Paul to speak to at the soon to be announced Investor Day.  How much untapped revenue capacity does GDNP have at it's disposal today, without further acquistions?

I suspect there is a fine line between ensuring the business adequately meets the demand of their existing customers with being able to land a whale and service all clients on a continual basis.  It could very well be that some of these whales are knocking on the door but there are manufacturing capacity limitations still to be worked out.

Rejean1 wrote: As the company grows and matures is a couple of new national clients in the fast food business. Who will be the first to go green?