Palram - Expectations Following the Q3 2023 Report

2024-02-10 · epsilontal · Symbols: PLRM.TA
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Inventory management remains a significant challenge. At this stage, following the goods crisis during the COVID-19 period, the company's management has gained experience in extreme conditions regarding overseas procurement. It's difficult to predict the long-term price of raw materials, but it's expected from the management to seize opportunities if they arise.

Efficiency and focus on profitable business sectors have been as crucial as when they divested from the trim board operation, which increased revenue but made it challenging to translate into net profit. By the end of 2022, the market did not favor this move; it's hard to see the payoff in the short term. However, ultimately, the company shed a burdening operation and also secured a decent capital gain.

Geographic expansion and activity growth through acquisitions. The company has made acquisitions in the United Kingdom and India, including "Pedgo Plastics," which serve as an internal hedge for the company's operations and a source of growth. Continuous processes in both seeking opportunities and their integration by the company take time until they pay off, requiring patience.

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