What do you guys think of the advertising spend impact on...

What do you guys think of the advertising spend impact on earnings for the second half? Will the market consider this an ongoing hit to earnings or just a one-off?
Note that $35-40m will take 4.8-5.5c off
earnings per share (NZ$). Will sales skyrocket with this increased advertising?

We don’t have much of a clue how we are travelling but the recent presentation mentions the advertising (again) and also the two big sales events that took place in China in the first half. When the half yr results came out Mr Babbage mentioned he was very happy with sales in Jan.

Im not concerned about competitors at this early stage. We are dominant in this niche, we have the awesome name and we have the reputation that comes with being a product of ANZ. I am more concerned about how the market interprets our results in the second half. Is it sales growth that will drive our valuation or will it be net profit which may not have as impressive growth in the second half because of the adv. spend.

Keen to hear everyone’s thoughts, esp. the guys who have been around long enough to have witnessed something similar in the past.

Appreciate any opinions here.