ATM - A2 Milk Corporation Limited

[winner69]

A bit lower sales than I expected, but the margin is better than I expected. Est EPS of 37.8c? Be interesting to see what the market thinks of it, forward forecast gives little away and cools expectations IMO.

EPS will be 26/27 cents (did you forget about tax.)

So

[hardt]

Never mind the expected higher marketing costs, the increasing overhead and the dear new CEO ... all good. They say you need to spend a buck to make a buck ; No worries.

Since when are overheads going to remain static for a growing consumer goods business expanding through physical locations in China... costs remaining inline with revenues...

Fonterra deal introducing many new products to market will require significant marketing expenditure... they should have around half a billion $$$ on hand right now as well.

A2 have been conservatively managing expectations since I can remember, the last dip was a result of some hype and not the company, although explained through label transitioning it will need to be confirmed later this year.

The lower than expected revenue guidance has been attributed to A2M's move to both new CFDA registered Chinese and English labelled packaging. Due to this transition, A2M has intentionally been running down stock levels so that distributors aren't left with the old packaging and to limit the chance of discounting (A2M’s premium status is the key to its success). Importantly, management said that Nestle's new A2 infant formula (called Atwo), while only early, has had no noticeable impact on its sales.

No one really listens to the evangelical holders anyway...

[couta1]

Will be interesting how the market reacts to this update, 922 mill(Unaudited) I thought they would do better than this to be honest. A bit of a nothing update IMO.

[winner69]

Will be interesting how the market reacts to this update, 922 mill(Unaudited) I thought they would do better than this to be honest. A bit of a nothing update IMO.

Better than bad news Couts

Remember the underpromise over delivery stuff hardt reminds us about

Next years growth will be?

[silu]

A bit disappointed with $922mil so interested to what the market is deciding on. But even then the shares I have left will stay with me for a long time or until something dramatic changes. Won't sell just because of some millions off my own assumptions.

[BlackPeter]

Since when are overheads going to remain static for a growing consumer goods business expanding through physical locations in China... costs remaining inline with revenues...

that's not what I read. From their announcement:

- marketing expenditure, as a percentage of sales, higher than FY2018

best wishes,

BP

[bull....]

just woke from my catnap and was shocked with this news .... bad and revenue growth was acheived from discounting as well according to goldmans.

[hardt]

that's not what I read. From their announcement:



best wishes,

BP

I read that bit too, overheads include more than just marketing.

[winner69]

just woke from my catnap and was shocked with this news .... bad and revenue growth was acheived from discounting as well according to goldmans.

Goldmans have been very bullish for a while

They forecast F19 growth of 33% (last I saw) ......hmmm

Think they would know with the number of times A2 guys been seen in the lift heading up to Goldmans offices.

[bull....]

be interesting if the price collaspses today , the fact it has struggled to get over $12 resistance and has been in a downtrend since the highs also the slight rise of late has coincided with some light short covering. be interesting to see .... fill the gap lol