ATM - A2 Milk Corporation Limited

[longy]

Who are the others that Synlait supply milk to?

[BlackPeter]

Who are the others that Synlait supply milk to?

Good question. I guess volume wise they have lots of cheap plain vanilla milk powder in their stores and they will probably compete on the same market place as Fonterra and sell it to whoever wants it.

Ah yes - and then there is the PAM's fresh milk in the South Island and a bit of cheese. Can't really imagine though, that the margins for any of that are amazing.

Looking at it from a margin perspective - I think the only other big earner but A2 might be Interferon - which they probably sell to various pharmaceutical companies. Problem with that is that the price for Interferon is quite - well, lets say - temperamental. Some months the margin is amazing and in other months its nearly zero. Not a reliable earnings base.

[mondograss]

Who are the others that Synlait supply milk to?

Synlait supply the basic milk powder to other brands (infant base powder) that might need it, much like Fonterra, while also having their own brands (consumer packaged), some of which don't have all their registrations in place. This latter category also includes ATM. So basically the way I read it, is they've had a drop in sales for the infant base powder, and their house brands have also had a drop in sales, but ATM is continuing to truck along the way it always has (and appears to be increasingly propping up the business).

[Southern_Belle]

Exactly this is the confusing thing. How come Synlait feels an impact and A2 does not?

A2 will be feeling the impact for sure. They have money in the bank that will enable them to have a buffer to manage risk.

Announcement $3 million in donations. Also mention of supporting their staff on the ground in China who have been asked to limit travel within the country and delay international travel.

[bull....]

A2 will be feeling the impact for sure. They have money in the bank that will enable them to have a buffer to manage risk.

Announcement $3 million in donations. Also mention of supporting their staff on the ground in China who have been asked to limit travel within the country and delay international travel.

a2 has failed to provide a statement on the virus impact.

[BigBob]

a2 has failed to provide a statement on the virus impact.

A bit back up the thread...:

A2 Milk pledges $3m to coronavirus research and relief

https://i.stuff.co.nz/business/farmi...rch-and-relief

"We are continuing to monitor the development of coronavirus both in China and abroad and, to date, have not experienced material changes to our operations resulting from the situation."

Combine that with today's NZX release and I think you'll conclude that they so no material impact to date....

[bull....]

A bit back up the thread...:

A2 Milk pledges $3m to coronavirus research and relief

https://i.stuff.co.nz/business/farmi...rch-and-relief

"We are continuing to monitor the development of coronavirus both in China and abroad and, to date, have not experienced material changes to our operations resulting from the situation."

Combine that with today's NZX release and I think you'll conclude that they so no material impact to date....

cheers bigbob so not yet but still maybe and who knows about sums it up

[Southern_Belle]

a2 has failed to provide a statement on the virus impact.

Have said they will make further commentary after results presented on the 27th of Feb. .... a bit of the old keeping calm & carry on (I bet they paddling furiously underwater). Until then speculation & volitility.

Hard to fathom that the disruption has 'No material effect of operations' as indicated today. Just wait & watch I guess

[couta1]

Nothing changed for A2 re the SML downgrade excepting their shareholding is now worth less.

[Sideshow Bob]

Nothing changed for A2 re the SML downgrade excepting their shareholding is now worth less.

Shareholding worth less on paper, but worth gold in terms of supply and blocking stake.