The $0.3m 1H20 EBITDA was disappointingly weak given the new Good Drinks strategy has only just kicked off. It was caused by a double whammy; sales to the national chains were down (for explainable reasons) while expansion costs were higher (creating some uncertainty over the cost growth required to meet strategic goals). We expect improving performance from 2H20, reflected in a revised $0.09 blended valuation (prior $0.11). However, a HOLD call is appropriate pending better delivery against strategic targets.
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