Candy at 12% yearly return?

The company I want to introduce today is a local market leader in confectionery that has faced challenges in recent years due to the pandemic, inflation, and high sugar and cocoa prices. As a result, the financial figures are somewhat weaker than in the past.

Since I consider these issues to be temporary, I expect a margin recovery and possibly further growth. Therefore, I view this company as a bargain.

Even if the revenue remains the same and the margins do not improve, I still expect an annual return of 12% on my investment.

This is another case where I think of Monish Pabrai: heads I win, tails I don't lose.

I introduce you to: