LICK THE SIDES… IT’S MELT­ING

Finweek English Edition - - Openers -

WATCH­ING de­vel­op­ments at Milk­worx is ex­actly like watch­ing a five-year-old eat­ing an ice cream cone on a hot day.

It’s a fu­tile ex­er­cise…and un­less the cone is snatched away and put in re­spon­si­ble hands, it’s go­ing to end in a big mess (and tears).

Ba­si­cally, Milk­worx’s top-line costs and ex­penses are melt­ing rev­enue to a trickle at bot­tom line, re­sult­ing in piti­ful cash flow of R90 000 – which is not a great help when your over­draft has swelled to R4,5m.

But Milk­worx is not licked yet. The com­pany now in­tends in­tro­duc­ing new prod­uct lines (milk-based prod­ucts) that should in­crease turnover and min­imise the sea­son­al­ity ef­fect of the ice­cream trade.

All sounds aw­fully des­per­ate…and rather un­con­vinc­ing.

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