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Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: yogi bare who wrote (1166)	2/17/1999 4:54:00 AM
From: Graham Dellaire	Respond to of 2453

Good observation Yogi...

To: yogi bare who wrote (1166)	2/21/1999 2:55:00 PM
From: telecomguy	Read Replies (1) \| Respond to of 2453

There is only one explanation that I can think of for your observation. Integrated Brands is distorting the consolidated numbers. Integrated probably has higher Gross Margin but much higher overhead to support the revenue (cost of secruing shelf space is probably lot higher than Yogen Fruz's traditional business of running a franchise where there is next to no cost in marketing/advertising) So I am sure if you stripped Integrated Brands numbers off the current Q1 numbers, the Cost of Goods sold would have been much higher. This tells me that Integrated Brands is not terribly a profitable business -RIGHT NOW. I assume that as Yogen Fruz rationalizes & integrates Integrated Brands operation, the consolidated margins will improve. For example, YF has manufacturing capacity in US through their previous acquisitions but it takes time to retool & get out of existing obligations that Integrated may have had. Also, it takes time to evaluate and streamline Integrated Brands staffing/operations to eke out margin/efficiencies. So if YF can continuously streamline Integrted Brands operating cost & overhead to increase the margin on that side of the business while regaining the high profit margin they used to have on their franchising business next quarter due to the sharp reduction in butterfat costs, I could see very nice improvment in earnings. Of course this is just my speculation -- not backed up by any analysis!