The revenue, gross margins, EBITDA was increased in fiscal 2020 as compared to fiscal 2019, but the decrease in gross profit margin because of the :
· Impact of tariffs imposed by the United States on the products produced in China and sold
in the United States.
· And a special incentives and discounts offered to some customers as part of their
commitment to make recurring purchases. These special incentives and discounts to select
customers will be discontinued at end of this fiscal year.
The above two reasons made a challenges, but the Company has a strong sales pipeline and balance sheet and
also have a plan going forward to strengthen gross margins and address its current tariff situation.
The Company in 2021 will focus on the following five key objectives which will help in improving its financial results in the short term and positioning the Company for continued growth:
Will Improve Gross Margins
The Company is focused on improving gross margins with a target of getting back to margin levels currently enjoyed.
Will Build a High Performing Sales Model
The Company intends to continue to build on and execute against the sales related initiatives to began in 2020 a high performing sales model that is focused on distributor acquisition and engagement, end customer lead generation, closing deals, and superior customer service.
Invest for Growth with Key Distributors
The Company will continue to invest aggressively in Maintenance, Repair and Operations distributors, who provide access to multiple sales channels, where the Company’s products are relevant.
HD Supply USA remains the ideal “partner model” that we have had the most success with and so the Company’s focus will be on taking this learning to help other relevant distributors.
Will also Drive B2B Awareness of the Cooking Fire Problems
The Company will continue to invest in marketing, focused on building B2B customer awareness of the cooking fire problem and its solutions.
The pandemic has created an environment where the cooking fire problem has become an even bigger issue.
Pioneering intends to continue investing in marketing primarily via highly targeted digital marketing to its primary markets and influencers to drive awareness for both the growing problem and its solutions.
The Company will also leverage old, new, and existing B2B customer traffic to generate additional sales opportunities.
Leverage Smart Burner Equity to Enable a Healthy Product Pipeline
The Company invested in R&D in 2020 and intends to launch new and enhanced cooking fire prevention solutions and products in 2021 to generate additional revenue opportunities.
Pioneering’s product development plan also includes further development in 2021 to expand its portfolio of fire prevention technologies and products.
As from the above discussion its concluded that the company's future plans are attractive and the company will grow in future with higher growth. Which will in turn increase the wealth of the stakeholders tremendously in long run.
I think at current time period this stock is undervalued and can be a good shot for long term investors to create their wealth.
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