RE:RE:RE:Thoughts... Given the revenue generated in the last four quarters of only $12.67 million and the average quarterly revenue over the last six quarters annualized of $16.226 million Fiscal 2023 would appear at significant risk for a significant decline in revenue vs. the $18.8 million in revenue reported in 2022.
Given the fall in the Canadian dollar since the first two quarters of 2022 when the blowout first half was reported which should boost forward sales at the current exhcnage rate and that re-ordering may include orders for expected future growth from here would >$17 million in 2023 fiscal revenue be a reasonable baseline assumption assuming the Chinese client also returns? That would be at least $5.5 million in revenue in each of the next two quarters. The news release explicitly says sales are lagging by one quarter. Does that suggest $6.2 million in revenue expectations in Q3 to get to $11.7 million in revenue recorded in the first half of 2022 one quarter later?
"- $5.5 million first six-month 2023 sales vs. $11.7 million for the same period in 2022; sales lagging by one quarter due to stocking campaign by one major customer in 2022 and further Marketplace reorganization"
CZO has a record $5.144 million in inventory on standby.
“Despite a slower start to the year, our business remains solid, and we expect the reordering pattern from one major customer to resume shortly." news release
The comapny has been looking for new sources of revenue. An acquisition could add to this by year-end. The company has also been developing a preservative free dry powder beta glucan with Symrise a news release informs. This could expend market opportunities next year. The neutraceutical market may also open up:
- "Successfully achieved the malting procedure for a first batch at small commercial scale level. Obtention of batch-to-batch consistency should allow for the offer of enriched formulations with high concentration of avenanthramides to serve some nutraceutical markets."