A Promising 2017 Outlook from YPB with $5m Pre-tax Profit Expected

The Brand Protection and Customer Engagement solutions company YBP, are pleased to share their updated outlook for 2017.

KEY TAKEAWAYS:

• Pre-tax profit for 2017 expected at $5 million.
• Annualised operating cost base reduction of 40% by mid-2017 following strategy refinements.
• Possible non-recurring restructuring charge in the range $0.50m – $0.75m.
• Breakeven expectation delayed three months due to contract closure slippage- now expected end June 2017.

The Company has provided an extensive list of updates in relation to the company’s 2017 goals.

“The obvious financial benefit from the refined strategy is securing a breakeven position at a lower revenue base and with less risk, while magnifying profit leverage to revenue growth.

The Annual Operating Plan (APO) was due to conclude in December but was delayed due to strategic opportunities in key territories arising in late November. These opportunities will improve market access, lower costs and enhance profit potential.

The most important opportunity is the change from a direct sale force to a partnership model in key territories where YPB’s costs have been traditionally high. This prospect arose in late November and has progressed well in the New Year, with targeted partners believing their home markets are ripe for YPB product.”

YPB Executive Chairman John Houston said: “After a detailed exhaustive process we are pleased to be able to reconfirm our profit expectations  for 2017, despite slippage in the anticipated timing of breakeven. The refinements to strategy developed in the AOP enhance the prospect of successful execution and the major cost-out decisions increase potential profitability and potential profit leverage without sacrificing opportunity. These changes reflect our determination to secure YPB’s future as a highly profitable, self-sustaining and strongly growing business.”

YPB Group is a pioneer in advanced brand solutions. Listed on the Australian Securities Exchange (ASX:YPB), the company is expanding its global footprint with an established presence in Australia, China, Thailand, USA, Mexico and India. YPB offers a wide range of Smart Security Packaging and Labelling solutions that can be incorporated into almost any material and offer cost effective strategies to “PROTECT” the integrity and value of products and brands in high risk.

To view the full ASX Announcement, please click here.