Ceapro Inc V.CZO

Chemicals Specialty Chemicals

Ceapro Inc. is a Canada-based biotechnology company. The Company is involved in the development of extraction technology and the application of this technology to the production of extracts and active ingredients from oats and other renewable plant resources. Its primary business activities relate to the development and commercialization of natural products for personal care, cosmetic, human, and animal health industries using technology, natural, renewable resources, and developing products, technologies, and delivery systems. The Company's products include a commercial line of natural active ingredients, including beta glucan, avenanthramides (colloidal oat extract), oat powder, oat oil, oat peptides, and lupin peptides, a commercial line of natural anti-aging skincare products, utilizing active ingredients, including beta glucan and avenanthramides and veterinary therapeutic products, including an oat shampoo, an ear cleanser, and a dermal complex/conditioner.

TSXV:CZO - Post by User

Ceapro Inc > Growth: Top line (YoY, sequential), 356% bottom line & More

<< Previous

Bullboard Posts

Next >>

Comment by stockfyon Nov 18, 2021 3:52am

75 Views

Post# 34139459

RE:Growth: Top line (YoY, sequential), 356% bottom line & More

From Q3 2021 report:

"Looking ahead, while considering the ongoing potential economic impact related to COVID-19, evolving consumption trends and escalating inflationary levels we believe Ceapro is well-positioned to once again deliver a strong growth in sales well in line with the positive trend achieved over the last years.

While we have experienced a “bump in the road” with the beta glucan trial, our solid base business and expanded pipeline will enable us to pursue the expansion of our business model to the nutraceutical sector with avenanthramides and yeast beta glucan for which we are going to conduct more preclinical assays before investing at large scale levels. "

stockfy wrote:

Some short-sighted investors along with some short-term traders sold CZO this morning. Nothing strange. There are always those who are unable to see the big picture. And the big picture is that CZO reported excellent quarterly results for another quarter in a row while the outlook remains bright:

1) Ceapro remains a profitable business with revenue YoY growth and sequential growth.

Specifically, Q3 2021 record sales of $4,523,000 compared to $3,476,000 for Q3 2020, representing a 30% increase, while net profit of $875,000 for Q3 2021 versus net profit of $192,000 for Q3 2020, a 356% increase.

2) Increased net profit for the third quarter of 2021 comes from improved margin of 65.2% as compared to 47.8% in 2020.

3) Ceapro maintains a fortress balance sheet with zero cash and a lot of cash to fund both organic growth and inorganic growth (acquisitions).

4) With CAD$7.3 million cash and zero debt, Ceapro's Enterprise Value currently is just CAD$37 million.

5) Given that adj. EBITDA in 2021 will be about CAD$5.5 million, CZO trades only 6 times its adj. EBITDA.

The peers trade above 10 times their adj. EBITDA and many of them lose money.

6) CZO is a takeover target and there is no question about it.