I have tabulated the rev and gross margin and yoy changes below. The 2 biggest rev changes in % come from: Cattle Farm (788%) and Organic Fertilizer (620%, mostly from HSA). The fattest margin came from fertilizer sales (49%) while Fishery saw a margin decline from 50% to 37% probably due to the lower selling price of Sleepy cod. I hope that latter effect is temporary due to low selling price (about $16/kg) vs high purchase price from 2012 ($26/kg). Going forward this effect should fade since they will be buying and selling sleepy cod (if any?) at the new reduced price and make profit on growing the fish from about 250g to 550g, so the % profit should not change much. I think however net margins in the range of 25-30% are here to stay for revenues below 0.5B (and 18-20% for rev above 0.5B) as Solomon has pointed out in the last CC. This quarter seems to validate his opinion. If so, I will have to revise all my projections for future years but I will wait to see more evidence on this. Thoughts?
2013 2012
Category Q1 Q1 Difference -> %
$ (GM%) $ (GM %) $
Fishery 31,867,295 (37%) 11,094,609 (50%) 20,772,686->187%
Plantation - - -
OrgFertilizer 8,082,062 (49%) 13,061(7%) 8,069,001->620%
Beef 6,795,837 (44%) 3,930,280 (41%) 2,865,557-> 73%
Cattle farm 8,362,557 (33%) 942,066 (84%) 7,420,491-> 788%
Total 55,107,751 (39%) 15,980,016 (50%) 39,127,735->245%
