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13-05-2017, 04:04 PM
On Revenue Recognition:
(Revenue recognition – page 73 of AR2016)
“The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic benefits during the reporting year arising from the course of the activities of the entity and it is shown net of any related sales taxes, returns and rebates. Revenue from the sale of goods is recognised when significant risks and rewards of ownership are transferred to the buyer, there is neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the amount of revenue and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue from rendering of services that are not significant transactions is recognised as the services are provided or when the significant acts have been completed. “
Agree with “grandslam” that both “X” and “Y” have been recognized in 1Q2017. For the Export model, revenue is recognized once the products are “shipped”)
On “Stockpiling”:
Stockpiling for conversion to DS model in a small scale is not a concern.
Stockpiling to meet increasing demand is not a concern.
Channel stuffing is a concern. – not suggesting this is happening
80% of FY2016 group revenue = sales of DR’s Secret brand of products
Inventories of SGD 43.8 m is at all time high as at 1Q2017
43.8 m worth of inventories could potentially turn into 146 m of sales, based on gross profit margin of 70%.
Seems like lots of inventories to me now.
Pace and number of DS license granted to BabyCare after being acquired by Usana in 2010:
It is going to be a long jurney I reckon………………..
For BWI/BWL/BWZ, the journey has yet to begin
When is BWI going to report its first China DS revenue ?
August 2010:
Usana acquires BabyCare Ltd (come with a DS license for Beijing)
Feb 2013:
Additional 3 DS license granted for Jiangsu province, Shanxi province and Tianjin
May 2016:
Additional 8 DS lincense granted for Liaoning Province, Shandong Province, Shanxi Province, Sichuan Province, Guangdong Province, Dalian City, Qingdao City, and Shenzhen City.
USANA Health Sciences Acquires BabyCare Ltd, a Direct Selling Company in China
http://www.usana.com/UPLOADS/usana/2010/...1_QAA.html
USANA Health Sciences’ China Subsidiary BabyCare Ltd. Receives Approval for Three Additional Direct Selling Licenses in Mainland China
http://phx.corporate-ir.net/phoenix.zhtm...&highlight=
USANA Receives Approval for 8 Additional Licenses in China
https://www.businessforhome.org/2016/05/...-in-china/
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(Revenue recognition – page 73 of AR2016)
“The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic benefits during the reporting year arising from the course of the activities of the entity and it is shown net of any related sales taxes, returns and rebates. Revenue from the sale of goods is recognised when significant risks and rewards of ownership are transferred to the buyer, there is neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the amount of revenue and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue from rendering of services that are not significant transactions is recognised as the services are provided or when the significant acts have been completed. “
Agree with “grandslam” that both “X” and “Y” have been recognized in 1Q2017. For the Export model, revenue is recognized once the products are “shipped”)
On “Stockpiling”:
Stockpiling for conversion to DS model in a small scale is not a concern.
Stockpiling to meet increasing demand is not a concern.
Channel stuffing is a concern. – not suggesting this is happening
80% of FY2016 group revenue = sales of DR’s Secret brand of products
Inventories of SGD 43.8 m is at all time high as at 1Q2017
43.8 m worth of inventories could potentially turn into 146 m of sales, based on gross profit margin of 70%.
Seems like lots of inventories to me now.
Pace and number of DS license granted to BabyCare after being acquired by Usana in 2010:
It is going to be a long jurney I reckon………………..
For BWI/BWL/BWZ, the journey has yet to begin
When is BWI going to report its first China DS revenue ?
August 2010:
Usana acquires BabyCare Ltd (come with a DS license for Beijing)
Feb 2013:
Additional 3 DS license granted for Jiangsu province, Shanxi province and Tianjin
May 2016:
Additional 8 DS lincense granted for Liaoning Province, Shandong Province, Shanxi Province, Sichuan Province, Guangdong Province, Dalian City, Qingdao City, and Shenzhen City.
USANA Health Sciences Acquires BabyCare Ltd, a Direct Selling Company in China
http://www.usana.com/UPLOADS/usana/2010/...1_QAA.html
USANA Health Sciences’ China Subsidiary BabyCare Ltd. Receives Approval for Three Additional Direct Selling Licenses in Mainland China
http://phx.corporate-ir.net/phoenix.zhtm...&highlight=
USANA Receives Approval for 8 Additional Licenses in China
https://www.businessforhome.org/2016/05/...-in-china/
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Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.