GRB’s strategic shift towards higher margin proprietary products in the sales mix will be accelerated post the acquisition of Matso’s in the September quarter. Sales growth in Gage Roads branded products in 1Q19 showed strong growth on the prior corresponding period, confirming positive momentum. Quarterly operating cash flow was negative, reflecting business seasonality and marketing spend, and we expect this to turn around in the December quarter. The share price has fallen in recent weeks, and with little change to our forecasts and valuation / target price, we upgrade to BUY (prior HOLD).
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