ATM - A2 Milk Corporation Limited

[bull....]

should lead the downside today fill the first gap on the nzx today , then only one to go at just over 9 sometime

[JeremyALD]

should lead the downside today fill the first gap on the nzx today , then only one to go at just over 9 sometime

I'll be spending most of my savings if it gets to $9. There's no way a bit of competition in one market justifies that big a drop. Remembering A2 has about 5% market share in China so there's a good chance of doubling that market share even with a bit of a healthy competition.

I'd be more worried about competition in AU where A2 has a very strong market share and produces strong profits.

[couta1]

I'll be spending most of my savings if it gets to $9. There's no way a bit of competition in one market justifies that big a drop. Remembering A2 has about 5% market share in China so there's a good chance of doubling that market share even with a bit of a healthy competition.

I'd be more worried about competition in AU where A2 has a very strong market share and produces strong profits.

All the focus is on Trump and his big mouth at the moment, the Nestle product is a side issue.

[couta1]

Tax man will be happy. But am sure you have that sussed. I have done the opposite and have been locking in losses for the last 4 weeks to get the profit down before 31/3/18.

Protecting ones capital has no tax implications if your intent at time of purchase was as a long term hold, that is until we get a comprehensive CGT.

[Beagle]

03/04/2018 09:29
GENERAL
NOT PRICE SENSITIVE
REL: 0929 HRS The a2 Milk Company Limited

GENERAL: ATM: Response to recent media commentary

3 April 2018

NZX/ASX Market Release

RESPONSE TO RECENT MEDIA COMMENTARY

The a2 Milk Company notes recent media commentary around competitor activity
in the China market.

The Company has previously advised that it expects broader interest in the A1
protein free category generally given positive developments in the science
and the strong growth being achieved by the Company.

The a2 Milk Company considers it is uniquely positioned to benefit from
expansion of the category over time, with:
o A strong brand based on contemporary values with unique
channel-to-market strategies;
o Enhanced consumer credibility as the creator and pioneer of the A1
protein free proposition;
o Ongoing investment in R&D as the global leader and innovator of A1
protein free products;
o New Zealand and Australia sourced milk supply for products for end
sale in China;
o A comprehensive suite of intellectual property including patents,
trade marks, proprietary processes and know-how.

The a2 Milk Company is the only company engaged in the sourcing, processing
and marketing of solely A1 protein free dairy and nutritional products in
global markets. This core principle contrasts significantly with likely new
entrants who will need to consider how to communicate internally and
externally the benefits of a new A1 protein free variant whilst their
traditional range of products continues to include A1.

The infant formula market in China is vast with an estimated retail value in
the order of USD20 billion and volume exceeding one million metric tonnes.
There is a multitude of brands and recent experience of other businesses has
demonstrated how challenging it is to establish new products in the absence
of a strong and unique consumer proposition. The Company is confident that
the past investment in its brand has established a strong consumer franchise
which will continue to strengthen as its level of investment and distribution
continues to grow.

The Company continues to perform strongly in each of its key markets and in
particular has not seen any change in the growth of its China business.

For further information contact:
The a2 Milk Company Limited
Geoffrey Babidge
Managing Director & CEO
+61 2 96977000

[Leftfield]

ATM has today sought to reassure the market re the recent Nestle move. My take on this is no effect to-date and none likely.

RESPONSE TO RECENT MEDIA COMMENTARY

The a2 Milk Company notes recent media commentary around competitor activity
in the China market.

The Company has previously advised that it expects broader interest in the A1
protein free category generally given positive developments in the science
and the strong growth being achieved by the Company.

The a2 Milk Company considers it is uniquely positioned to benefit from
expansion of the category over time, with:
o A strong brand based on contemporary values with unique
channel-to-market strategies;
o Enhanced consumer credibility as the creator and pioneer of the A1
protein free proposition;
o Ongoing investment in R&D as the global leader and innovator of A1
protein free products;
o New Zealand and Australia sourced milk supply for products for end
sale in China;
o A comprehensive suite of intellectual property including patents,
trade marks, proprietary processes and know-how.

The a2 Milk Company is the only company engaged in the sourcing, processing
and marketing of solely A1 protein free dairy and nutritional products in
global markets. This core principle contrasts significantly with likely new
entrants who will need to consider how to communicate internally and
externally the benefits of a new A1 protein free variant whilst their
traditional range of products continues to include A1.

The infant formula market in China is vast with an estimated retail value in
the order of USD20 billion and volume exceeding one million metric tonnes.
There is a multitude of brands and recent experience of other businesses has
demonstrated how challenging it is to establish new products in the absence
of a strong and unique consumer proposition. The Company is confident that
the past investment in its brand has established a strong consumer franchise
which will continue to strengthen as its level of investment and distribution
continues to grow.

The Company continues to perform strongly in each of its key markets and in
particular has not seen any change in the growth of its China business.

[sb9]

ATM has today sought to reassure the market re the recent Nestle move. My take on this is no effect to-date and none likely.

Translation "what's the fuss about..."

[littletramp]

They raise a very good point when defending their position IMHO. How do other companies looking to enter this market explain the benefits of the A1 protein free varients, while still looking to promote their traditional range which includes A1?

[bull....]

na , fill the gaps what stock goes up 50% in 1 mth lol let alone the biggest company time to fill the gaps

[winner69]

Putting some colour around the A2 announcement its obvious that their outstanding brand metrics are the key to ensure their growth profile remains intact in the Chinese landscape. All this means the optionality value is enormous..

‘Gap filling’ the time to buy more