Can you provide comments on Grey Wolf Animal Health Yr End and 4th Qtr results. Also do you think it is a buy at these levels for speculative position. It looks like a nice result and good margin. It is profitable and appears to provide consistent results. Nice cash position on the balance sheet. Also like the Palidan Labs connection with the current CEO. Your feedback would be appreciated.
Thank you
In Q4, WOLF swung to a loss of $0.28M, (1c per share), compared with a profit of $5.8M ($25c per share), in the year-prior quarter. Revenue for Q4 increased 11.4% year over year to $6.2M. Revenue for the full year increased by 12.3% year-over-year to $25.4M. This increase was due to organic revenue growth in both the Animal Health and Pharmacy business units.Gross margins for the quarter and year end decreased slightly impacted by increased margins in the Pharmacy business unit and slightly reduced margins on the product mix in the Animal Health business unit. Adjusted EBITDA for Q4 was flat at $0.7M and for the full year increased by $0.2M to $3.6M. WOLF was faced with some margin pressures in 2023, with gross margins and EPS declining year-over-year. Additionally, the loss displayed in Q4 was not a great signal. While revenue growth looks good, we would hold off here as there is of course size risk, and the decline in margins in 2023 were not something we like to see.