Q: Dear 5i team.
Please comment on Flow beverage recent Q1 results. Just read Stifels' downgrade and fairly bleak assessment for future. Sure sounds like insolvency knocking.
Appreciate hearing your take.
Please comment on Flow beverage recent Q1 results. Just read Stifels' downgrade and fairly bleak assessment for future. Sure sounds like insolvency knocking.
Appreciate hearing your take.
5i Research Answer:
FLOW has declined 98% since its IPO in 2021, and its recent earnings were quite weak - EPS of ($0.24) missing estimates of ($0.13) and sales of $8.27M missing estimates of $10.6M. Sales have mostly been flat over the past year, it has an equity deficit of $14.4M, it is highly unprofitable, and it mostly issues debt and shares to fund its operations. Gross profits are dwindling, and unless it is able to improve its costs or sales dramatically, we do not feel there is much likelihood of a rebound for this name.