Per the latest conference call, booked Shipping line costs in Q1 were 35% higher. Since management expects substantial volume in the current year, I assumed that they would have made some forward contracts at similar rates to avoid shipping delays. Their maximum volume will happen in H1. Also, management expects the cost to ease out in the next few quarters and that being an open statement does not imply immediately. Hence, I guessed that freight costs will remain elevated.
Margin accretive RTE business volume is small and there are other costs that will flare up such as electricity cost that management admitted in the latest call.
Above all are just opinions. Reality will follow its own random walk!!!
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