Originally Posted by
Snoopy
Taken on an overall company view, where costs and production functions are allocated doesn't matter. But looked at on a divisional basis, and A2 are quite clear that it is the Australasiian division that is driving global growth, it does matter. 'A2 UK' and 'A2 USA' have been structured to be fundamentally less profitable. That probably saves some tax for ATM going forwards (NZ company tax rates less than UK and USA?). But it also means that divisional profitability, both in the UK and the USA, is likely to be less than some shareholders expect given their potential market growth.
SNOOPY