GRB’s progress report for 2Q19 showed continued brand product growth and a solid gross margin. However, lower than expected overall production volume meant 1H19 unaudited EBITDA of $2.1m was below our estimate. We have dropped our full year production volume forecast, and pencil in $7.0m EBITDA for FY19 (noting 2H19 will benefit from a full 6 months of Matsos). Our revised target price of $0.122 (prior $0.129) continues to back a BUY call, as does the momentum in proprietary brand growth and the upside from an evolving strategy for the east coast.
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