Originally Posted by
winner69
Synlait pissed A2 off last March when they came out with a big profit downgrade essentially blaming A2 for reducing their forecasts
A2 responded that their forecasts were minor …..reduced by about 5% ….but they did a bit of stirring saying Synlait delivery record wasn’t the best
Reaction now is for A2 to take the exclusive part of the supply agreement out …but supply agreement still in place
Obviously some intent to utilise their own shiny stainless steel.
I still don’t really understand why A2 want to shift from being a high margin marketing company (valuable) to being a milk producer (capital intensive and lower margins). Never mind if they have illusions of being another Fonterra good luck to them …and share price will never be 20 bucks again.