ATM - A2 Milk Corporation Limited

[Ggcc]

but growth slowing going forward and positive fx in the first quarter will reverse

True, but I for one am happy with the results and management are not concerned about the new legislation China put forward....

[Sideshow Bob]

but growth slowing going forward and positive fx in the first quarter will reverse

Growth always going to get harder, and have stated expect FX to reverse.

By my reckoning, not allowing for any growth $86m for 4 months = PE of 29.8

[bull....]

Growth always going to get harder, and have stated expect FX to reverse.

By my reckoning, not allowing for any growth $86m for 4 months = PE of 29.8

pe still high dont you think if growth to slow down a little?

regulatory in china is still uncertain until it happens

when they going to give up on the uk?

i like that they are doubling down on increased marketing etc got plenty of cash they can use will need it for usa market

[minimoke]

Well, that's a bit ho hum. Kind of business as usual. No mention of relieving supply constraints. $368m revenue a quarter (thats a bit off hyped expectations) is as good as its going to get. No mention of how those great profits are going to be applied. Other than China no mention of growth in other markets.

Seems they do have some secret squirrel plans under way on how the future will unfold. But its a long time between milky drink if we have to wait till end of financial year. Suggest it could be huge - given they seem to be stockpiling a large war chest of cash.

[Leftfield]

From Jaynes address: And, continuing the trend, we have today also released a record result for the first four months of the year. We are reporting first four months: Revenue of $368.4 million, which represents a growth of 40.5% over prior year; EBITDA of $124.2 million, 58.5% growth on prior year; Profit before tax is $124.9 million up 60.0% and NPAT is $86.0 million up 64.5%.

I had hoped for better.....but am reasonably happy. Lack of info' on regional sales, makes it hard to judge UK and USA progress. Be interesting to see today's SP action.

[Sideshow Bob]

pe still high dont you think if growth to slow down a little?

regulatory in china is still uncertain until it happens

when they going to give up on the uk?

i like that they are doubling down on increased marketing etc got plenty of cash they can use will need it for usa market

Agree with most of your points there Bull. But if growth slows, it is off a higher base. if it dropped to 20%, it is still another $50m+ to the bottom line.

China is China, and I think will usually have uncertainties, no matter what. The business I work in is China focused, and regulation and market access are by far the biggest issues.

No debt and brand is a huge thing when the followers are coming - so makes sense to invest in brand and marketing.

[minimoke]

Be interesting to see today's SP action.

first up is 100,000 at $10.51. Its a "LA" condition - but I dont know what that one is.

[Sideshow Bob]

W No mention of relieving supply constraints.

Only thing I noted was a reasonable increase in inventory. $28.4m to $64.1m.

Historically never really talked about supply or any constraints etc.

[allfromacell]

I was hoping for more revenue growth but good to see the Chinese label sales growth up 75% and 11/11 event sales tripling. It seems to me they could be growing a lot faster if they had more IF supply, hope there are lots of questions about this at the meeting.

[allfromacell]

Only thing I noted was a reasonable increase in inventory. $28.4m to $64.1m.

Historically never really talked about supply or any constraints etc.

That data is from June so is old information, they haven't updated the inventory levels which I would love to know.