2022 RevenuesThere was no 10% growth in 2022 – it was a revenue-mirage.
Sales did NOT go up… VOLUME-wise. Read annual report MDNA section. FOREX gain and price increase increased revenue. Gagnon spun the ‘record sales’. Ultimately sales were flat – volume-wise – for the year and the increase in revenue was almost entirely attributable to one-time events.
Gagnon KNEW volumes were flat throughout 2022… if he didn’t, he is incompetent. (Mind you, he also believes market cap increased 874% in 2022 sooooo….)
That said, while I do not believe Gagnon can maintain – or even save this company - I am willing to give him the benefit of the doubt. PERHAPS the fact that sales VOLUMES were flat in 2022 is the reason Gagnon directed the production team to produce 1 year+ worth of inventory. There could be pent-up demand that was indicated to him by Symrise - that means we could be in for a HUGE Q1-2023! With the high-profitability of the business, cash from operations and working capital could be in for a massive boost which would position Ceapro well from a resourcing and R&D perspective.
Q1-2023 results Gagnon’s Waterloo?
We will soon know.