Indeed.
Pernod Ricard made a GP [gross profit] of $92.1 million but still filed a huge loss. We would need to see their accounts, and I'm not going to spend anytime on this.
To put it another way... There is more to it than just the MSB Lake
However, it all suggests that their corporate acquisitions and take over financing costs have produced some of these heavy losses. Further, and to provide balance sheet value for the loan gearing, they may have over paid, and or, over valued their acqisitions, which now in an even more competetive market, they find themselves writing down these capital values to the Profit and Loss account.
Well clearly - their accountants must have advised them that their properties were over valued, based on future profit multiples and volume factors - But of course, the original owners and producers bought out by the PR Board, may have walked away with all the Capital Gain.
I don't know any of the history ?
PR having made their bed - "they can jolly well lie in it" Would be a valid message from the independent owner drivers. Reading this report, Mr Yealands doesn't appear to be over fussed by the situation. He talks about non controlling partnerships.
If this was the scenario, I dont feel that sorry for these huge market dominating corporates, whose intention is generally, to burn-out the small producers. When or If their finance gearing to retained earnings goes wrong - They've only got themselves to blame.
