ATM - A2 Milk Corporation Limited

[bull....]

Good for you..

yep . probably alot of people who believe they are investors but really are traders and pay no tax

[sb9]

yep . probably alot of people who believe they are investors but really are traders and pay no tax

different strokes for different people, i'm happy with my long term gain of over 2800% based on today's price..

[Ggcc]

yep . probably alot of people who believe they are investors but really are traders and pay no tax

I would agree with this statement.

[freddagg]

Don't forget the taxman lol

Tax is easy. Just trade a third more than you would if you weren't paying tax. There is no additional risk as the taxman is taking the risk on the extra third.

[bull....]

different strokes for different people, i'm happy with my long term gain of over 2800% based on today's price..

thatss the beauty of the markets everyone has the opportunity to win and be happy no matter what your style

[Oliver Mander]

Looking good to me. There are five things that are exciting here...
1) US growth continuing strongly - have to do some more work on assessing the EBITDA trends (loss of $30m this half) but the growth looks good...risk is still high, though, when the marketing investment being poured into it looks bigger than the revenue.
2) the statement relating to Jan-Feb 2020 in China being ABOVE expectations...a counter-cyclical to COVID-19???
3) "due to the increasing scale of our infant nutrition business, the Board considers it is now appropriate to assess participation in manufacturing capacity and capability to complement our existing supply chain relationships. Accordingly, we are presently evaluating opportunities to address this issue." = LOOK OUT SYNLAIT!!!!
4) ...and just to make that takeover a little bit easier they have $618m in the bank - otherwise known as >50% of total assets. Not a bad war chest.
5) long-term EBIT margins of 30% are actually higher than my own models (I had 29.7%). Yee-ha!

Happy long-term holder

[tomm]

THIS IS GEOFF BABIDGE CEO'S OF A2M'S SPEECH REGARDING ABOUT THE CORONAVIRUS THIS MORNING !

The a2Milk Company says revenue generated in the first two months of the June half is ahead of expectations, partly driven by demand among Chinese families in the wake of the coronavirus outbreak.
"The reality is that those increased sales are a result of the impact of the coronavirus on a product such as ours, which is not discretionary. Where we clearly have a strong brand franchise, where people have a view as to the high quality of the product," said a2Milk chief executive Geoff Babidge.

The company could respond to the demand spike and sell its products direct into China and other channels such as the online and daigou channels, he said.
"We're also air-freighting product in to ensure we can meet demand," he said.

The fast growing dairy and infant formula company revealed the coronavirus-fuelled demand as it unveiled a 21.1 per cent jump in its first half net profit to $NZ184.9 million ($177.2 million).
A key driver of the result was a doubling in sales of China label infant formula products to $NZ146.7 million. Total revenue from China and other Asian regions also surged, by 76.7 per cent to $NZ317.2 million.We're delighted with the growth in our China business, a doubling of our China label sales compared to the prior period," Mr Babidge told The Age and The Sydney Morning Herald.

"That's as a result of a substantial uplift in capability in the size of the organisation, a strong focus on growing the mother and baby store footprint, the number of stores, obviously a result of increasing marketing activity.
"And also an outcome of the work done during the last 12 months in better understanding the consumers and their particular needs. And the best way to position our brand to capitalise on the market opportunities," he said.
The company, which is listed on both the New Zealand and Australian stock exchanges, also lifted its results in other markets and categories, with infant nutrition sales in Australia up 9.5 per cent to $NZ352 million.Total revenue for the group rose almost 32 per cent, to $NZ806.7 million, which was ahead of market consensus of $NZ773 million. Most of the company's revenue was generated by sales in the infant nutrition category, which rose 33.1 per cent to $NZ659.2 million.


Underlying profit came in at $NZ188.19 million, ahead of expectations among Morgans analysts of a $NZ178 million result.
"We are pleased with the results of our strategy execution and continue to be energised about our key products, core markets and growth outlook," the company said.
"With the benefit of the comprehensive work undertaken during 2019 to enhance our understanding of the consumer and sales channels in our core markets, we have continued the increased levels of investment in marketing and capability to execute our growth plan," it said.
Away from the fast-growing China market a2 more than doubled its sales in the United States, reaching total sales of $28 million. The company has a goal of generating $US100 million of annualised sales in the US. Australia/New Zealand revenue rose 10 per cent to $NZ460.2 million.
In a note to clients Citi analyst Sam Teeger said a2's statutory net profit "beat" was "largely driven by stronger than expected sales growth (+32%) and EBITDA margins (about 33 per cent) which exceeded guidance".


"We see a2 returning to its roots of rewarding investors with consistent earnings upgrades and, while also factoring in upside risk to 2H20, we see the stock likely to react positively," he said.

[see weed]

Wait for post lunch action once analysts have done their valuations and put out recommendations..

Yes, maybe a second wave of new shareholders buying in the next few days or weeks, pushing the sp up even further, with all the positive news to come out in tonights and tomorrows media outlets. As for tax, which I pay little of, I transfer my profits into dividend striping. It works really well.

[tomm]

Wait till after lunch .....

[Leftfield]

Crikey what a day for Traders..... almost wish I was one!

ps did anyone notice that in the 'mature' fresh milk market of Australia A2's market share is now 11%.
A glimpse of the future for other markets IMHO.