GRB has kept up the positive momentum with a strong 4Q18 performance and an impressive $4.5m EBITDA (unaudited) for FY18. This was driven by increased volumes and the shift to higher-margin proprietary products, which made up 39% of the total sales mix. The “brand in hand” strategy has not only demonstrably boosted brand awareness, but looks to have made a contribution to earnings given an overall GP margin of 62%. We have upped FY19 forecasts given the strong 2H18 outturn, and largely maintain forecasts further out. Our target price, based on longer-term expectations, climbs to $0.123 (prior $0.117). We like the sector appeal and strategic execution to date. BUY maintained.
To access our review of Gage Roads Brewing report please log in under the Client Area Log In at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
+61 8 9224 6888
+852 3557 4888