ATM - A2 Milk Corporation Limited

[ralph]

all 3 parties have a common interest and the issue of which factory produces A2 platinum is not relevant.
A2 mngt would also control the manufacturing process with majority control.


Although quite plausible /conceivable to some degree , the Chinese whom can gerrymander the process to suit themselves with export licences etc will not let a2 get a majority of synlait as they know this is the goose laying the eggs & a2 sells those eggs back to them at a highly Inflated price .
Good luck to A2 shareholder's it would be a great step for new zealand, but lets be realistic the chinese are to inscrutable & cunning for that to happen

[Bikeguy]

all 3 parties have a common interest and the issue of which factory produces A2 platinum is not relevant.
A2 mngt would also control the manufacturing process with majority control.


Although quite plausible /conceivable to some degree , the Chinese whom can gerrymander the process to suit themselves with export licences etc will not let a2 get a majority of synlait as they know this is the goose laying the eggs & a2 sells those eggs back to them at a highly Inflated price .
Good luck to A2 shareholder's it would be a great step for new zealand, but lets be realistic the chinese are to inscrutable & cunning for that to happen

Well said,

[aperitif]

all 3 parties have a common interest and the issue of which factory produces A2 platinum is not relevant.
A2 mngt would also control the manufacturing process with majority control.


Although quite plausible /conceivable to some degree , the Chinese whom can gerrymander the process to suit themselves with export licences etc will not let a2 get a majority of synlait as they know this is the goose laying the eggs & a2 sells those eggs back to them at a highly Inflated price .
Good luck to A2 shareholder's it would be a great step for new zealand, but lets be realistic the chinese are to inscrutable & cunning for that to happen

What if Bright are the ones building a stake in a2 over the last month for that very reason. Then you have alignment

[Newman]

What if Bright are the ones building a stake in a2 over the last month for that very reason. Then you have alignment

Why would Bright Dairy want to accumulate A2m shares at a high price? The money to buy A2m could be applied to control Synlait and get what Bright Dairy wants. It does not need A2M as much as A2M needs Bright Dairy.

[Sideshow Bob]

https://www.nzx.com/announcements/426363

The a2 Milk Company (“the Company”, “a2MC”) today announces a positive 1H241result driven by strong execution of itsgrowth strategy which is mainly focused on capturing the full potential of its China market opportunity.

More specifically,the Company:
1. Delivered a positive interim result with 3.7% revenue growth and 5.0% EBITDA2 growth
2. Grew total IMF sales despite a double-digit decline in the China infant milk formula (IMF) market
3. Achieved top-5 China IMF position with brand health reaching new highs supported by record levels of marketing
4. Launched new GB registered China label IMF product successfully with transition ahead of plan
5. Stabilised English label IMF sales on 2H23 after several periods of decline with new products on the way
6. Improved revenue growth guidance for FY24 relative to prior outlook statement

Financial results and outlook3,4
• Revenue growth of 3.7% to $812.1 million- Regional revenue: China & Other Asia segment up 16.5%, ANZ down 24.1% due to a change in distribution strategy,USA up 8.6% and MVM down 4.7%- Category revenue: Total IMF up 1.5% with China label up 10.4% and English label down 6.9%5, liquid milk in ANZand USA up 1.5% and 7.0% respectively, other nutritionals6 up 48.5% and ingredients (MVM) down 4.7%
• EBITDA up 5.0% to $113.2 million with an EBITDA margin of 13.9% (up 0.2ppts)• Net profit after tax (NPAT) attributable to owners of the Company up 15.6% to $85.3 million7
• Basic earnings per share (EPS) up 18.6% to 11.8 cents
• Closing net cash8 of $792.1 million up $34.9 million on June 2023 with operational cash conversion of 86.8%9
• FY24 revenue growth guidance increased from low, to low-to-mid single-digit percent on prior year. EBITDA marginexpected to be broadly in line with FY23 (see FY24 Outlook in the “1H24 Results Commentary and Outlook”announcement)
• Medium-term revenue ambition timing modified to reflect market conditions (see Medium-term revenue ambitionupdate in the “1H24 Results Commentary and Outlook” announcement)Operational highlights
• Delivered total IMF sales growth of 1.5% in a challenging China IMF market that continues to be impacted by thecumulative decrease in newborns over the past few years, market-wide transition to products formulated under the newGB standards, and macroeconomic conditions, with total market sales down 13.6%
• Reached new highs in China brand awareness, trial and loyalty metrics supported by increased investment and moretargeted and integrated sales and marketing campaigns
• Achieved record market share in China label IMF channels, with 3.5% market value share in mother and baby stores(MBS) and 3.6% market value share in domestic online (DOL) retail channels, resulting in being a top-5 share gainer in theChina label market and top-5 brand overall including English label

• Launched upgraded China label IMF product a2 至初® range successfully, formulated in line with China’s new GBstandard, and with transition ahead of plan
• Stabilised total English label IMF sales compared to 2H23 with English label market value share relatively stable –achieved 20.6% overall share of the English label market, with 21.4% share in the cross-border e-commerce (CBEC)channel and 20.5% in the combined offline-to-online (O2O) and Daigou channels, with high growth in emerging channelssuch as Douyin/TikTok
• Continued to optimise English label route-to-market through drop-shipping from Tier 1 distributors to consumers, anddeveloped a new distribution partnership with the market leader in the O2O channel (Yuou)
• Progressed development of two new English label IMF products with MVM and a new commercial IMF supply chainpartner (Yashili NZ, a subsidiary of Mengniu) – targeting to launch the first product (a2 Gentle Gold™) in 2H24
• Commenced production of a2 Platinum® Stage 4 IMF with MVM and another new commercial IMF supply chain partner(New Zealand New Milk, a subsidiary of Lactalis)
• Accelerated sales growth of other nutritional products, up 48.5%, utilising A1 protein free milk powders produced byMVM
• Developed two new fortified English label adult milk powder products (a2™ Immune and a2™ Move), to launch in 2H24
• Continued to develop a2 Milk® Lactose Free market penetration and progressed major upgrade of Kyabram processingfacility in Victoria with Kyvalley Dairy Group• Improved profitability of USA business, commenced distribution of a2 Platinum® IMF under US Food and DrugAdministration (FDA) Enforcement Discretion with selected retailers in-store and online, and progressed long-term FDAIMF approval with clinical trial underway
• Advanced sustainability programme significantly including commissioning a high-pressure electrode boiler at MVMpowered by certified renewable energy10 to materially reduce greenhouse gas emissions from the site and achieved CY23target of all certified farms supplying A1 protein free milk attaining an animal welfare certification and farmenvironmental plan via third party audit and verification processesCEO commentary

The a2 Milk Company’s Managing Director and CEO,
David Bortolussi said:
• “We continued to execute against our growth strategy, primarily focused on the China market which now representsapproximately 80% of our total branded sales.”
• “We grew our IMF sales in a market that was down double-digits with China label sales up significantly, and launched ournew GB registered China label IMF product which is progressing well.”
• “After several years of COVID-19 related disruption and market decline, we are pleased that our a2 Platinum® sales andthe English label market have stabilised compared to 2H23.”
• “Beyond IMF, we are investing in growth in other nutritional products for kids, adults and seniors, and we are alsopursuing growth in new markets.”
• “As we continue to invest and grow, consumers are increasingly seeing the benefits of a2 Milk™, providing us with aplatform to further expand our portfolio, with the launch of more new products expected later this year.”

[winner69]

Pushed their $2 billion sales target out a year …now F27 or later

Must have read my comments re growth rates required to do it by F26 lol

[whatsup]

https://www.nzx.com/announcements/426363

The a2 Milk Company (“the Company”, “a2MC”) today announces a positive 1H241result driven by strong execution of itsgrowth strategy which is mainly focused on capturing the full potential of its China market opportunity.

More specifically,the Company:
1. Delivered a positive interim result with 3.7% revenue growth and 5.0% EBITDA2 growth
2. Grew total IMF sales despite a double-digit decline in the China infant milk formula (IMF) market
3. Achieved top-5 China IMF position with brand health reaching new highs supported by record levels of marketing
4. Launched new GB registered China label IMF product successfully with transition ahead of plan
5. Stabilised English label IMF sales on 2H23 after several periods of decline with new products on the way
6. Improved revenue growth guidance for FY24 relative to prior outlook statement

Financial results and outlook3,4
• Revenue growth of 3.7% to $812.1 million- Regional revenue: China & Other Asia segment up 16.5%, ANZ down 24.1% due to a change in distribution strategy,USA up 8.6% and MVM down 4.7%- Category revenue: Total IMF up 1.5% with China label up 10.4% and English label down 6.9%5, liquid milk in ANZand USA up 1.5% and 7.0% respectively, other nutritionals6 up 48.5% and ingredients (MVM) down 4.7%
• EBITDA up 5.0% to $113.2 million with an EBITDA margin of 13.9% (up 0.2ppts)• Net profit after tax (NPAT) attributable to owners of the Company up 15.6% to $85.3 million7
• Basic earnings per share (EPS) up 18.6% to 11.8 cents
• Closing net cash8 of $792.1 million up $34.9 million on June 2023 with operational cash conversion of 86.8%9
• FY24 revenue growth guidance increased from low, to low-to-mid single-digit percent on prior year. EBITDA marginexpected to be broadly in line with FY23 (see FY24 Outlook in the “1H24 Results Commentary and Outlook”announcement)
• Medium-term revenue ambition timing modified to reflect market conditions (see Medium-term revenue ambitionupdate in the “1H24 Results Commentary and Outlook” announcement)Operational highlights
• Delivered total IMF sales growth of 1.5% in a challenging China IMF market that continues to be impacted by thecumulative decrease in newborns over the past few years, market-wide transition to products formulated under the newGB standards, and macroeconomic conditions, with total market sales down 13.6%
• Reached new highs in China brand awareness, trial and loyalty metrics supported by increased investment and moretargeted and integrated sales and marketing campaigns
• Achieved record market share in China label IMF channels, with 3.5% market value share in mother and baby stores(MBS) and 3.6% market value share in domestic online (DOL) retail channels, resulting in being a top-5 share gainer in theChina label market and top-5 brand overall including English label

• Launched upgraded China label IMF product a2 至初® range successfully, formulated in line with China’s new GBstandard, and with transition ahead of plan
• Stabilised total English label IMF sales compared to 2H23 with English label market value share relatively stable –achieved 20.6% overall share of the English label market, with 21.4% share in the cross-border e-commerce (CBEC)channel and 20.5% in the combined offline-to-online (O2O) and Daigou channels, with high growth in emerging channelssuch as Douyin/TikTok
• Continued to optimise English label route-to-market through drop-shipping from Tier 1 distributors to consumers, anddeveloped a new distribution partnership with the market leader in the O2O channel (Yuou)
• Progressed development of two new English label IMF products with MVM and a new commercial IMF supply chainpartner (Yashili NZ, a subsidiary of Mengniu) – targeting to launch the first product (a2 Gentle Gold™) in 2H24
• Commenced production of a2 Platinum® Stage 4 IMF with MVM and another new commercial IMF supply chain partner(New Zealand New Milk, a subsidiary of Lactalis)
• Accelerated sales growth of other nutritional products, up 48.5%, utilising A1 protein free milk powders produced byMVM
• Developed two new fortified English label adult milk powder products (a2™ Immune and a2™ Move), to launch in 2H24
• Continued to develop a2 Milk® Lactose Free market penetration and progressed major upgrade of Kyabram processingfacility in Victoria with Kyvalley Dairy Group• Improved profitability of USA business, commenced distribution of a2 Platinum® IMF under US Food and DrugAdministration (FDA) Enforcement Discretion with selected retailers in-store and online, and progressed long-term FDAIMF approval with clinical trial underway
• Advanced sustainability programme significantly including commissioning a high-pressure electrode boiler at MVMpowered by certified renewable energy10 to materially reduce greenhouse gas emissions from the site and achieved CY23target of all certified farms supplying A1 protein free milk attaining an animal welfare certification and farmenvironmental plan via third party audit and verification processesCEO commentary

The a2 Milk Company’s Managing Director and CEO,
David Bortolussi said:
• “We continued to execute against our growth strategy, primarily focused on the China market which now representsapproximately 80% of our total branded sales.”
• “We grew our IMF sales in a market that was down double-digits with China label sales up significantly, and launched ournew GB registered China label IMF product which is progressing well.”
• “After several years of COVID-19 related disruption and market decline, we are pleased that our a2 Platinum® sales andthe English label market have stabilised compared to 2H23.”
• “Beyond IMF, we are investing in growth in other nutritional products for kids, adults and seniors, and we are alsopursuing growth in new markets.”
• “As we continue to invest and grow, consumers are increasingly seeing the benefits of a2 Milk™, providing us with aplatform to further expand our portfolio, with the launch of more new products expected later this year.”

Nice 8.3% kick up, so far today.

[winner69]

Nice 8.3% kick up, so far today.

And still rising

Over 6 bucks by lunch time

As BaaBaa would say that’s 50% up from recent low

[Sideshow Bob]

And still rising

Over 6 bucks by lunch time

As BaaBaa would say that’s 50% up from recent low

$5.85

The real action starts at lunchtime......

[Balance]

And still rising

Over 6 bucks by lunch time

As BaaBaa would say that’s 50% up from recent low

Excellent!

The big cap stocks performing helps sentiment towards NZX stocks - and they do need a lift.