It appears that Goodyear/Dunlop probably did not want to do the...

It appears that Goodyear/Dunlop probably did not want to do the storage/warehousing/distribution so they have outsourced this to NTD.......who can now leverage their warehouses and systems to become the local wholesaler for this brand and they benefit by capturing a small margin (smaller than a retail margin which is what madamswer was referring to when he referenced the 29%).

The reason this is only earnings accretive from 4Q24 is because the arrangement only starts in Aus in Apr24 (NZ starts in Nov, but that will be too small to move the EPS needle I suspect).

What is a little unclear is the funding arrangement because they make the following 2 statements:
- NTD will acquire substantial opening inventory already imported into Australia and New Zealand by Goodyear
- NTD does not expect any additional funding requirements for working capital or logistics support before 2QFY25

They are already quite stretched from a cash/debt perspective and had to renegotiate their banking covenants with CBA so purchasing this inventory should stretch them further so unclear why they don't need more working capital, but perhaps they have got some transitional arrangement with goodyear to start the distribution and not necessarily pay upfront for the stock until 2Q25 (so Dec 24).....hard to know, but perhaps they have negotiated on that basis given they don't have a lot of cash to tie up in more stack atm.