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Re: DewmBoom post# 57162

Thursday, 01/31/2019 1:07:46 PM

Thursday, January 31, 2019 1:07:46 PM

Post# of 186029
Ok, I'll give you some facts, not sure if I will be able to convince you.

1. The gross margin is not 12.6%, it´s 16.3%. You can see it in Q3 Fiscal 2018 Results PR:

The company achieved a gross margin of 16.3%, within the higher range of expectations.



2. Those financial results still included financial information incorporating the legacy RealBiz operations.

“This is a quarter that ended with the spin-off of the real estate division, so it will be the last quarter that includes financial information incorporating the legacy RealBiz operations,” explained Verus CEO, Anshu Bhatnagar.



3. In Q2 Fiscal 2018 Results PR the company stated it is shifting from wholesale to retail to improve margins

“As we previously communicated, we are shifting from a wholesale to a retail focus as part of a strategy to create a more valuable distribution network, beginning with about 2,800 locations. Our SKUs are not private label versions of existing products but are based on original recipes under our own labeling and branding.”


The shift from wholesale to retail is underway, which will greatly improve margins on future revenue streams



4. It is normal to have lower margins when a company is starting. They improve with growth because of economies of scale.

5. There are businesses that generate earnings mainly leveraged on margins, others mainly leveraged on volume.


VRUS