Not sure if Kenneth will make milk an election issue, one wonders though in a time of falling farm gate income, whether we will see increasing competition amongst dairy farmers for A1 to A2 conversion. The A2 premium for farmers, as I understand, is 8 to 10% to cover conversion costs plus incentive. Would be interesting to hear from the famer folk on the thread.
Should be a positive result next week I’m predicting.
We heard anecdotally from Peter Nathan a couple of weeks ago that the company now has a 9% market share in Australia. This places them slightly further ahead than even the revised forecast, which notably was brought forward from 10% at FY16 to 10% at HY15. Too early for profitability in the UK but perhaps some initial sales volume coming through now, plus initial revenues from the new markets and products launched in the last year.
Despite the exchange rate impact, I’m looking for +20% yoy on revenue growth. Earnings should be appropriately close to zero, as per the last couple of years, reflecting the very large investments made in growth.
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