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Freedom Foods Group Limited (FNP), formerly Freedom Nutritional Products Limited, is a diversified food company operating in the Health and Wellness sector.

The Company has consumer brands with leading or growing market shares in their categories, including Freedom Foods, a2 milk, So Natural, Australia's Own, Paramount and Brunswick.

http://www.fnpl.com.au
 
Picking up from the "Breakout" thread, where Tape Trader commented on a recent flag pattern, yet asked, why no announcement?
I believe the announcements of recent months, concerning Director interest and option exercises, would have spoken volumes! A few progress reports about China and Vietnam were hidden among them...

The long-term chart paints an even clearer "flag" picture. (I'd ignore the brief jump to extremes before the current rectangle.)

FNP w 27-06-16.png

Not holding yet, but I am watching, cash ready, for the next move underpinned by volume..
 
pixel said:
Picking up from the "Breakout" thread, where Tape Trader commented on a recent flag pattern, yet asked, why no announcement?
I believe the announcements of recent months, concerning Director interest and option exercises, would have spoken volumes! A few progress reports about China and Vietnam were hidden among them...

The long-term chart paints an even clearer "flag" picture. (I'd ignore the brief jump to extremes before the current rectangle.)

View attachment 67241

Not holding yet, but I am watching, cash ready, for the next move underpinned by volume..
Click to expand...

Looks good Pixel- Nice chart :xyxthumbs
 
A chart for FNP, it may see a bit of price resistance coming from a triple top resistance and a rising support/resistance at its current level between $5.20 and $5.40. There was a volume spike on March 15th, there was no ASX notice around this time to explain it.

fnp 16.4.19.png
 
 
Miner said:
Folks
Could any one holding or following FNP, please advise what made these directors (same family) so loving about FNP's future to spend millions even after a not so impressive trading update.
https://www.asx.com.au/asxpdf/20200604/pdf/44jdc0s84zk8qb.pdf
https://www.asx.com.au/asxpdf/20200604/pdf/44jdbyrjw8frmb.pdf
https://www.asx.com.au/asxpdf/20200604/pdf/44jdbwqtk9m7dd.pdf
https://www.asx.com.au/asxpdf/20200529/pdf/44j6tmhcz8j7kb.pdf COVID UPDATE
https://www.asx.com.au/asxpdf/20200506/pdf/44hm62y2sthz18.pdf
https://www.asx.com.au/asxpdf/20200306/pdf/44ft8142j2j1w4.pdf
Click to expand...
Very interesting Miner - there's gold in 'dem hills surely ;) (can't help myself....)

Former market darling, I haven't looked at it in quite a while. Still very expensive with $1bn market cap on $472m sales and $55.2m EBITDA for FY2019.

But it has made significant investments ($170m in FY19) and so fruits of that should show through in next year or so.

Their key products are dairy & nutritional ingredients and plant-based beverages - are people going to be using these if there's an economic downturn? And aren't people drinking less dairy these days?

I'm very interested and will look into it closer :)
 
Huskar said:
Very interesting Miner - there's gold in 'dem hills surely ;) (can't help myself....)

Former market darling, I haven't looked at it in quite a while. Still very expensive with $1bn market cap on $472m sales and $55.2m EBITDA for FY2019.

But it has made significant investments ($170m in FY19) and so fruits of that should show through in next year or so.

Their key products are dairy & nutritional ingredients and plant-based beverages - are people going to be using these if there's an economic downturn? And aren't people drinking less dairy these days?

I'm very interested and will look into it closer :)
Click to expand...
Hey @Huskar
I could not stop myself commenting with a hope that you would return on this thread with your research.
With your question "And aren't people drinking less dairy these days" - My response is really? Why A2M is sky rocketing constantly - Just for China? Or quality food consciousness ? I know our home purchase is A2 milk for a while even that costs $5 per 2 litres compared to Harvey Fresh Milk ($2.65 in IGA).
Regardless recession, people will still be eating plant based beverages, dairy product and nutritional products - smaller no of mass who would be prepared to pay premium.

Ironically what often I see, comes true after 2 years time when I sold off the original investments - like it happened with A2 M, FMG, PRN, MIN and few others. It is my bloody lack of patience and lack of faith on my own research.

Hopefully would hold FNP until 2022 unless things get pear shape. Once again the directors would like to have return of their investments and my bought out price is lesser than what they reportedly paid. Oh yes, Black Rock probably increased their stake too (unless I am mixing up between Black's investment with other stock ).
Happy Investing and Happy Wining. :)
 
The Perich family holds something like 59% of FNP, so the free float tends to be restricted. Directors Michael, Ron and Anthony P plus Tom Bryan all added to holdings recently, buying on-market.

Latest update, 31 May, was eventually seen as 'less bad than it might have been', and Directors buying; SP is up bit since early June low of $3.40:
• Sales normalising through May to pre COVID volumes in retail grocery in Australia.
• Lower demand in Out of Home and Industrial Channels through April and May, with tentative signs of recovery arising from changes to stay at home restrictions.
• Increasing export demand in SE Asia and China from retail grocery channels after periods of significant decline in the first quarter of calendar 2020.
• Margin decline against pre COVID plan given shifts in channel and portfolio mix.
• No delays in supply chain arrangements have been experienced into China and SE Asia.
• Reshaping of operational footprint to increase efficiency and realise material cash savings into FY 2021. Costs of restructuring and write-down of non-cash obsolete and discontinued stock provision to be required for FY 2020.
• Material impact on second half profitability with consequential flow on impact to our pre COVID 19 expectations

Also, sneeking in on the bottom point, as indicated,
the Company as a prudent measure to ensure financial flexibility deferred the H1 FY2020 dividend as announced on 28 February 2020 to a payment date to be determined. The Company has now decided to cancel this dividend. The Company does not anticipate paying a full year dividend.
Click to expand...

The Company remains focused on "delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks."

- 20% of branded UHT milk ("Australia's Own", + MilkLab) ... big in Asia
- largest on-roof solar battery project in Vic (Shepparton factory) ... offset for dairy
- coming to an end of the 5-year spend for new facilities and marketing
- am somewhat suss for their cereal and snack offerings, as they are relegated to the niche end of the supermarket aisles

upload_2020-6-8_15-9-18.png
 
Dona Ferentes said:
The Perich family holds something like 59% of FNP, so the free float tends to be restricted. Directors Michael, Ron and Anthony P plus Tom Bryan all added to holdings recently, buying on-market.

Latest update, 31 May, was eventually seen as 'less bad than it might have been', and Directors buying; SP is up bit since early June low of $3.40:
• Sales normalising through May to pre COVID volumes in retail grocery in Australia.
• Lower demand in Out of Home and Industrial Channels through April and May, with tentative signs of recovery arising from changes to stay at home restrictions.
• Increasing export demand in SE Asia and China from retail grocery channels after periods of significant decline in the first quarter of calendar 2020.
• Margin decline against pre COVID plan given shifts in channel and portfolio mix.
• No delays in supply chain arrangements have been experienced into China and SE Asia.
• Reshaping of operational footprint to increase efficiency and realise material cash savings into FY 2021. Costs of restructuring and write-down of non-cash obsolete and discontinued stock provision to be required for FY 2020.
• Material impact on second half profitability with consequential flow on impact to our pre COVID 19 expectations

Also, sneeking in on the bottom point, as indicated,

The Company remains focused on "delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks."

- 20% of branded UHT milk ("Australia's Own", + MilkLab) ... big in Asia
- largest on-roof solar battery project in Vic (Shepparton factory) ... offset for dairy
- coming to an end of the 5-year spend for new facilities and marketing
- am somewhat suss for their cereal and snack offerings, as they are relegated to the niche end of the supermarket aisles

View attachment 104471
Click to expand...
Very good update.
I looked back and found their PE is significantly high 81.25 compared to 42.1 fo A 2M, SM1 17.2 raises some serious questions. But my original query remains, if the directors from one family do not see any benefits then without receiving dividend for full year, how their own investment model works with continuous investment ??
This is the policy of disclosure - good one.
https://ffgl.com.au/wp-content/uploads/2020/03/20200212-Continuous-Disclosure-Policy.pdf
Annual Report https://ffgl.com.au/wp-content/uploads/2019/10/2-9188-FFGL-AR-2019-FINAL-1-updated-pages.pdf
The annual performance was reasonably good with 35% net sales and 40% net profit increased, the directors have taken a reasonable fee and salaries of the executives not sky rocket amount. Not sure however why then did they cut dividend ?
What is the motivation for the directors when there is no additional return to them.
Probably I hold myself and not look at it for next 6 months.

upload_2020-6-8_18-56-21.png

https://ffgl.com.au/

upload_2020-6-8_19-6-0.png
 
I have no proof, but a sneaking suspicion about the dividend being withheld. Some call it Prudent allocation of Capital (in these challenging times), but there may be the China factor overhanging the growth strategy.

From AFR 13 May;
One of China’s biggest investors in Australian agriculture is caught up in Beijing’s bans on beef imports apparently over trivial labelling issues.

New Hope Group-controlled Kilcoy Global Foods was also hit by not-so-friendly fire in 2017 when a Chinese ban on its beef imports dragged on for three months....
Click to expand...
which is early in the Trade Standoff argy-bargy being played out by Beijing.

.... article goes on to say:
New Hope formed Australian Fresh Milk Holdings in 2015 through a $100 million deal with the Moxey and Perich dairy farming families in NSW. The other shareholder is ASX-listed Freedom Foods [with 10%].

Australian Fresh Milk Holdings expanded its vast dairy footprint in January with the $40 million acquisition of four linked properties in northern Victoria covering 4000 hectares and with annual water entitlements of more than 6700 megalitres
Click to expand...
... and my suspicion is that New Hope Group may sit on the wrong side of current CCP power struggle, and/or maybe being a bit too 'autonomous' for Beijing's liking. There's a picture dated 2015 of New Hope's Liu Yonghao, Pres Xi Jinping, PM at the time Tony Abbott and Twiggy Forrest signing a food and farming agreement in Beijing.

And with FNP putting money in, recently, they'd be wanting a return on that investment.
 
Dona Ferentes said:
I have no proof, but a sneaking suspicion about the dividend being withheld. Some call it Prudent allocation of Capital (in these challenging times), but there may be the China factor overhanging the growth strategy.

From AFR 13 May;
which is early in the Trade Standoff argy-bargy being played out by Beijing.

.... article goes on to say:
... and my suspicion is that New Hope Group may sit on the wrong side of current CCP power struggle, and/or maybe being a bit too 'autonomous' for Beijing's liking. There's a picture dated 2015 of New Hope's Liu Yonghao, Pres Xi Jinping, PM at the time Tony Abbott and Twiggy Forrest signing a food and farming agreement in Beijing.

And with FNP putting money in, recently, they'd be wanting a return on that investment.
Click to expand...
Dona; I thought we were going to have a chat about Vulcan Energy?
 
Dona Ferentes said:
I have no proof, but a sneaking suspicion about the dividend being withheld. Some call it Prudent allocation of Capital (in these challenging times), but there may be the China factor overhanging the growth strategy.

From AFR 13 May;
which is early in the Trade Standoff argy-bargy being played out by Beijing.

.... article goes on to say:
... and my suspicion is that New Hope Group may sit on the wrong side of current CCP power struggle, and/or maybe being a bit too 'autonomous' for Beijing's liking. There's a picture dated 2015 of New Hope's Liu Yonghao, Pres Xi Jinping, PM at the time Tony Abbott and Twiggy Forrest signing a food and farming agreement in Beijing.

And with FNP putting money in, recently, they'd be wanting a return on that investment.
Click to expand...
Let's hope positive (not corona) on money
 
Wednesday morning, Freedom Foods announced its chief executive Rory Macleod was "on leave pending a further announcement", the day after its chief financial officer Campbell Nicholas resigned.
"To lose one senior manager may be regarded as a misfortune; to lose two looks like carelessness"
Click to expand...
 
Dona Ferentes said:
Wednesday morning, Freedom Foods announced its chief executive Rory Macleod was "on leave pending a further announcement", the day after its chief financial officer Campbell Nicholas resigned.
Click to expand...
Hush up for a big trading halt with sob?
 

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