ATM - A2 Milk Corporation Limited

[sb9]

Relentless !

Yep, writing on the wall is clear for Jayne. She has to come out all guns blazing for next update at ASM time or else game over for her. At least she resisted the temptation to offload her shares as of today and so does other senior managers. Let's see how its going to come out in the wash.

[winner69]

Yep, writing on the wall is clear for Jayne. She has to come out all guns blazing for next update at ASM time or else game over for her. At least she resisted the temptation to offload her shares as of today and so does other senior managers. Let's see how its going to come out in the wash.

Probably next update will be much of same .....good sales growth with reduced margins as we invest for growth

That mightn’t hack it these days and the market will be disappointed

[sb9]

Probably next update will be much of same .....good sales growth with reduced margins as we invest for growth

That mightn’t hack it these days and the market will be disappointed

Could well be. However, she needs to flash some sort of an ace card to get back buy in from market. Its gonna be very interesting ASM in Akl this time in Nov.

[Beagle]

Relentless !

I find when it comes to investing a "dogged" approach to working things out for myself works best

[Lewylewylewy]

Market doesn't want growth right now, it wants income, which means higher margins. Id hazard a guess that an ok growth could result in a drop in share price at the next announcement.

[silu]

I'm not quite sure where I read it but apparently Nestle spends nearly double more on marketing based on revenue than ATM.

[Leftfield]

I'm not quite sure where I read it but apparently Nestle spends nearly double more on marketing based on revenue than ATM.

Baby Tiger over in HC commented as follows....

"Nestle spent between 20-25% of their revenue on Marketing and admin expenses (source, Nestle's half yearly report: 10bn marketing over 45bn revenue), only to earn net profit of 10% of revenue (5bn over 45bn). On top of that, Nestle's net profit is declining, along with their market share.

Where as A2M, only spent 10% of revenue, to earn net profit at 21%"

In my experience with companies such as Unilever, the marketing spend of 10% of revenue is about right. Sometimes it goes as high as 20% to (say) launch a new product/range and sometimes much lower (under 5%) for an established or 'mature' product/range.

[Balance]

Market doesn't want growth right now, it wants income, which means higher margins. Id hazard a guess that an ok growth could result in a drop in share price at the next announcement.

Market wants sales growth & growth in income - there is acceptance that margins on incremental sales growth will be at reduced margins - the concern is that all sales will be at reduced margins - so the jury will be out until the next update.

[winner69]

Baby Tiger over in HC commented as follows....

"Nestle spent between 20-25% of their revenue on Marketing and admin expenses (source, Nestle's half yearly report: 10bn marketing over 45bn revenue), only to earn net profit of 10% of revenue (5bn over 45bn). On top of that, Nestle's net profit is declining, along with their market share.

Where as A2M, only spent 10% of revenue, to earn net profit at 21%"

In my experience with companies such as Unilever, the marketing spend of 10% of revenue is about right. Sometimes it goes as high as 20% to (say) launch a new product/range and sometimes much lower (under 5%) for an established or 'mature' product/range.

A lot of what that Baby Tiger says is rubbish

[winner69]

Has that guy on HC updated his Lytleton export data?

I’m banned from HC - even trying to access it.