It's rare to find a company with good news in a coronavirus world but A2 Milk says sales in January and February into China have exceeded expectations. The infant formula producer has reported a 21% increase in half year profit to A$177 million, after doubling its sales into China and increasing its operations in the US. Interim CEO Geoffrey Babidge speaks to Rachel.
Holders may be interested in this commentary around the recent results presentation. Hear it here.
While listening you will find it helpful to refer to the presentation documents here.
Must say the presentation is v impressive. Great to see Geoff back in charge and clearly doing so well surrounded by a very impressive management team.
In the Q & A session there was further comment on the ATM examining its capital expenditure into further production facilities. The following explanation given was (IMO)
- Unlikely that ATM will purchase outright a production facility
- More likely that ATM will pursue opportunities to work with others (buying strategic stakes in other producers.)
- key goal for ATM is to achieve diversification of its supply base
- Stressed that ATM is not seeking a substantial change in supply, rather just a step in the ongoing strategy.
After listening I'm more than happy to retain 50% of my portfolio in ATM. Great long term hold IMHO.
Holders may be interested in this commentary around the recent results presentation. Hear it here.
While listening you will find it helpful to refer to the presentation documents here.
Must say the presentation is v impressive. Great to see Geoff back in charge and clearly doing so well surrounded by a very impressive management team.
In the Q & A session there was further comment on the ATM examining its capital expenditure into further production facilities. The following explanation given was (IMO)
- Unlikely that ATM will purchase outright a production facility
- More likely that ATM will pursue opportunities to work with others (buying strategic stakes in other producers.)
- key goal for ATM is to achieve diversification of its supply base
- Stressed that ATM is not seeking a substantial change in supply, rather just a step in the ongoing strategy.
After listening I'm more than happy to retain 50% of my portfolio in ATM. Great long term hold IMHO.
Maybe by a dollar or more. Bought some in 2 August for 1752, 12 August for 1590, 21 August 1495 and the other day for 1380 I will chase it down farther as my overall cost is still below 4 bucks ..............................
Sometimes it pays practicing on your "catching knives" skill from time to time I might start looking when to sell these acquired "blunted knife shares" from today. Just love what real milk can give you.
Few interesting take aways listening to the conference call
- consultancy fees should moderate over time, feoffs words for cut consultants down
- sounded very positive and frequently acknowledged work that jayne had done but almost never mentioned her by name. Also commended several of her hires including Race Strauss and Lisa from jetstar.
- their target is 100m revenue in the US which they have set as internal milestone. My best guess is this is where they believe the tipping point to profitibility lies.
Originally Posted by Left field
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I will chase it down farther as my overall cost is still below 4 bucks ..............................
I might start looking when to sell these acquired "blunted knife shares" from today. Just love what real milk can give you.
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