this report (as i discussed yesterday prior to release) is...

this report (as i discussed yesterday prior to release) is always difficult to untangle due to the wide ranging group segments, vague wording and effect of capex/ new launches etc.

key take home positives for me:
1) guidance upgraded AGAIN! i would expect 380m at least but probably higher. its hard to predict because so many new markets and new products
2) i think they said they have launched around 25 new products in h1 and are launching another 40 in h2!!!! thats kind of insane ... probably more products launched than for my entire share portfolio combined in the last 3 years
3) 300m capex program finishing, although further new capex to support demand which is growing even more rapidly than expected. also taren point move almost finished is a bonus as this was a temporary drag on profits - will continue to drag in h2.
4) a2 baby formula.... ka-ching!
5) a2 uht - they will have a monopoly in this long life space so should do well
6) all business segments performing well and growing... even seafood which has been the one drag on the group! the move to improve supply flexibility of wholesale seafood will help going forward
7) asian market expansions seem to be on track... although no real major news here other than awaiting milk certification from chinese govt and increasingsales force in china from 12-50.
8) usa market expansion on track.
9) new crankt deal looks good on first glance for expanding further beyond power foods into the high margin health/ sports foods area. i love that they can use their own dairy and plant ingredients to achieve vertically integrated production thus enhancing margins.

i could go on but yes overall i cant really see any negatives in the report. would be nice to see more progress on improving operating gross margins a s ebitda margins as sales ramp up but im confident this will come over the next 18 months so am happy to hold and watch 2018 play out, it should be a great 2018 and 2019 for fnp!