ATM - A2 Milk Corporation Limited

[Oberon]

The Listener had a bit on A2 v A1 this week

Seemed reasonably complementary to A2 ...as long as you were prpared to pay more for it (and the perveived benefits)

I have IBS and switched to plant-based milk products a couple of years ago. Whenever I drank regular milk I invariably had cramps, bloating and gas. Since investing in A2 a couple of months ago I thought it would be the decent thing to at least try the product.

Guess what? No cramps, no bloating and no gas (not from the milk, at least). I really wasn't expecting it. Price per litre works out to a few cents more than what I pay for Pams soy milk. It's creamier and tastes better. Thumbs up from me.

Given the complexities of IBS it's not guaranteed to work for everyone, but it's certainly worth a try if you have any gastrointestinal issues.

[tomm]

I have IBS and switched to plant-based milk products a couple of years ago. Whenever I drank regular milk I invariably had cramps, bloating and gas. Since investing in A2 a couple of months ago I thought it would be the decent thing to at least try the product.

Guess what? No cramps, no bloating and no gas (not from the milk, at least). I really wasn't expecting it. Price per litre works out to a few cents more than what I pay for Pams soy milk. It's creamier and tastes better. Thumbs up from me.

Given the complexities of IBS it's not guaranteed to work for everyone, but it's certainly worth a try if you have any gastrointestinal issues.

The same here , it wasn't that bad when I was at a young age but then I got the same problem when drinking milk as yours at the age of 35, since then I and my children changing to A2, the kids are so happy about A2 Milk and told me to change to A2 because their stomach feel so easy, they just refuse to drink normal Blue Anchor Milk. I feel the same so here we go A2 Milk since. Being honest Goat Milk is also feel good but the problem is it is so expensive and I am just an average earner. And please don't talk about alternate milk or vegs milk, can't compare it is maybe just for vegeterians but not for me and they are also expensive as hell .

[Leftfield]

I have IBS and switched to plant-based milk products a couple of years ago. Whenever I drank regular milk I invariably had cramps, bloating and gas. Since investing in A2 a couple of months ago I thought it would be the decent thing to at least try the product....Guess what? No cramps, no bloating and no gas (not from the milk, at least).

The same here.....

Similar story here....not only that, investing in ATM 5 yrs ago has seriously changed my financial health!!

[Oberon]

Similar story here....not only that, investing in ATM 5 yrs ago has seriously changed my financial health!!

Mine as well.

Except I threw my hat into the ring about 10 weeks ago. So my health in that regard is pretty sickly at the moment. Hopefully the upcoming AGM will give my health a much need boost.

[Blue Skies]

I see A2 milk sold in the supermarket under the Anchor brand as a2 The a2 Milk Company & also under licence under the Fresha Valley brand as 'fresh A2 Protein' milk.
Since this is just milk from cows with the A2 protein & easy enough to segregate herds, can someone remind me what's going to stop China agri (or any one else) from doing this. Why would they remain dependent on NZ for this milk for long if a growing demand exists? Forgive me if this such a naive question but still a bit of a mystery to me after seeing all these dairy factories (under cover milking herds) we've built in China & the strong drive for independence of food supply.
This my biggest concern about investing in A2 now & if we are not going to see anything like the strong growth its had going forward, & unable to meet its projected PE.

[Balance]

Latest News from the CEO .

Big Read: A2 Milk - formula for growth - NZ Herald


https://www.nzherald.co.nz/business/...ectid=12280993

Well worthwhile reading.

A few issues if you read the article in terms of competition and the need for ATM to spend more on IT, logistic support and staff to meet the competitive landscape in China.

[longy]

I see A2 milk sold in the supermarket under the Anchor brand as a2 The a2 Milk Company & also under licence under the Fresha Valley brand as 'fresh A2 Protein' milk.
Since this is just milk from cows with the A2 protein & easy enough to segregate herds, can someone remind me what's going to stop China agri (or any one else) from doing this. Why would they remain dependent on NZ for this milk for long if a growing demand exists? Forgive me if this such a naive question but still a bit of a mystery to me after seeing all these dairy factories (under cover milking herds) we've built in China & the strong drive for independence of food supply.
This my biggest concern about investing in A2 now & if we are not going to see anything like the strong growth its had going forward, & unable to meet its projected PE.

Segregation is time consuming. Mums/dads in China trusting foreign brands more than local's productions and given the OZ and NZ's good reputation.

[BlackPeter]

I see A2 milk sold in the supermarket under the Anchor brand as a2 The a2 Milk Company & also under licence under the Fresha Valley brand as 'fresh A2 Protein' milk.
Since this is just milk from cows with the A2 protein & easy enough to segregate herds, can someone remind me what's going to stop China agri (or any one else) from doing this. Why would they remain dependent on NZ for this milk for long if a growing demand exists? Forgive me if this such a naive question but still a bit of a mystery to me after seeing all these dairy factories (under cover milking herds) we've built in China & the strong drive for independence of food supply.
This my biggest concern about investing in A2 now & if we are not going to see anything like the strong growth its had going forward, & unable to meet its projected PE.

Nothing stopping the Chinese or anybody else to copy the product (A2 milk, this is ...) ... and it even would be legal (as long as they are careful in naming it). A2 might have an edge in testing for A2, but I don't think this is an issue as soon as competitors have pure A2 herds ...

However - the big money maker for A2 is not the milk, but the Infant formula (IF) ... and for some funny reason do Chinese parents not trust Chinese companies to produce IF which is good for their children. Must have something to do with poisonous non food items found previously in Chinese milk products (https://en.wikipedia.org/wiki/2008_Chinese_milk_scandal) ...

Ah yes, and for the infant formula do Synlait have IP protection - the recipe contains more than just milk.

[Beagle]

I see A2 milk sold in the supermarket under the Anchor brand as a2 The a2 Milk Company & also under licence under the Fresha Valley brand as 'fresh A2 Protein' milk.
Since this is just milk from cows with the A2 protein & easy enough to segregate herds, can someone remind me what's going to stop China agri (or any one else) from doing this. Why would they remain dependent on NZ for this milk for long if a growing demand exists? Forgive me if this such a naive question but still a bit of a mystery to me after seeing all these dairy factories (under cover milking herds) we've built in China & the strong drive for independence of food supply.
This my biggest concern about investing in A2 now & if we are not going to see anything like the strong growth its had going forward, & unable to meet its projected PE.

Segregation is time consuming. Mums/dads in China trusting foreign brands more than local's productions and given the OZ and NZ's good reputation.

I won't win any friends for saying this but :-
I used to think the intellectual property that ATM often bragged about was worth a lot and was a defensible moat.
Nestle debunked a lot of myth about that a while back and I believe over time A2 Milk will just become another commodity.
I agree ATM has first mover advantage but that only lasts so long and then...
Its easy enough for PRC to issue an edict that changes the goalposts and any company that relies on the Chinese for a large proportion of their sales deserves to have an appropriate risk premium attached to it
Growth is quite obviously slowing and the risk is eps growth slows even further in FY21 and beyond and the PE contracts still further as ATM becomes just another commodity company.
An enormous amount of future growth is already built into the share price and one wonders if its not more than fully built in.
The company enjoyed fabulous outperformance in the strong growth phase with Geoffrey Babbage's tremendous leadership but the jury is well and truly out on whether Jayne Herdlicka can continue that momentum.

On the plus side mega star Taylor Swift is the headline act at the singles day this month and the annual meeting isn't far away.

[Lewylewylewy]

That perspective sounds like a barrier to entry in countries that trust their existing suppliers, ie America