ATM - A2 Milk Corporation Limited

[ziggy415]

has ATM been cleared to sell milk powder in China...seem to recall they were one that hasn,t reached registration yet

[iceman]

has ATM been cleared to sell milk powder in China...seem to recall they were one that hasn,t reached registration yet

Synlait produces the A2 Platinum for ATM and no they have not been registered in the current round for Chinese imports/exports. You will see umpteen posts about this 2-4 pages back on this thread

[MAC]

From an ongoing business perspective the pending strategy for entry into the US is more significant about here and a much bigger long term market too.

For nearly a year we waited for the working group to assess options, I went to Auckland for the AGM in November and heard that the working group were still assessing, but, it now seems that they do have a plan, we just await some form of deal to be closed and the announcement to be made.

From the February HY report: “The Company has determined to progress North America as its next growth initiative and has established a working group plan for this opportunity” – C J Cook, Chairman

My humble view is that a replication of the ATM owned processing plant in Australia would be a good model to clone on a grander larger scale for the US and Canada, but we could equally see a series of JV’s, or perhaps, with the North American market being so large with widely distributed incumbent dairy companies we could even see M&A options come into play also.

http://www.dairyreporter.com/Manufac...lk-brand-in-US

[MAC]

MAC with the company wanting to progress into north america and currently making very little profit as well as only 13m in the bank how long do you think it will be before we see the next capital raising.

A capital raising, yes do I hope so, a nice hefty discounted rights issue to fund a new US construction oriented growth option would be my preference, whilst existing revenues streams continue to be used to expand the other growth markets. A rights issue would be a fantastic top up opportunity for shareholders about here.

Existing revenue streams are sustainably matched to and are funding the present 2016 growth targets and expansion toward them. It’s been refreshing IMHO to see a company like ATM pumping every skerrick of cash into growth rather than hoarding it or worse paying it out as dividends.

I suspect though that we may just see JV's announced for the US with joint capital funding, possibly like the UK Muller Wiseman JV, but, I wouldn't rule out a zero capital M&A deal if the board is ready and open to such a consideration at this early stage in ATM’s business plan.

http://aboutthea2milkcompany.com/wp-...eview-2012.pdf

[iceman]

Snapiti, below is a post from MAC posted last week. I think you will find he is fully aware that a capital raising may be needed for a big push into the US, while Australian sales and profits are funding push into UK & China.
In fact MAC is on record saying he would like to see this capital raising sooner rather than later, providing the company has a clear marketing strategy and goals. I agree with him and would also support that. After all this is a small fledgling company with aspirational goals and clear strategy to achieve them. Some of us like that.

We’ve received good solid long term 2016 sales goals from ATM for their markets in Australia, the UK and China, and we cannot be far now from receiving one for the US entry. This is one of the reasons I’m quite bullish on ATM, good and bold management drives the right company culture and growth.

It’s a big continent and market North America and IMO the prospect of faffing about with one JV at a time may just not offer the momentum such a market deserves.

I would very much like to see management step it up a notch about here and go for a hefty capital raising rights issue to fund a good level of expansion into the US. Even if it just allows for the opening of four or five Smeaton Grange size facilities in say two year’s time.

http://aboutthea2milkcompany.com/wp-...2013-Final.pdf

This was the approach that was so successful in Australia and IMO is worthy of replication in the US.

I’d like to see our directors earn those big compensation packages we provide them with a bold move too.

[iceman]

A capital raising, yes do I hope so, a nice hefty discounted rights issue to fund a new US construction oriented growth option would be my preference, whilst existing revenues streams continue to be used to expand the other growth markets. A rights issue would be a fantastic top up opportunity for shareholders about here.

Existing revenue streams are sustainably matched to and are funding the present 2016 growth targets and expansion toward them. It’s been refreshing IMHO to see a company like ATM pumping every skerrick of cash into growth rather than hoarding it or worse paying it out as dividends.

I suspect though that we may just see JV's announced for the US with joint capital funding, possibly like the UK Muller Wiseman JV, but, I wouldn't rule out a zero capital M&A deal if the board is ready and open to such a consideration at this early stage in ATM’s business plan.

http://aboutthea2milkcompany.com/wp-...eview-2012.pdf

Sorry hadn't seen your response when I posted my above post. I hope I haven't put words in your mouth MAC !

[MAC]

No wonder the A1 competition in Australia are squawking, ATM success is hitting their bottom line and they cannot develop their own A2 products as the A2 Milk Company own the IP and the patents.

ATM don’t just have the first mover advantage when they enter a new market like the US, effectively the A2 Milk Company is the market.

So, when all those big US dairy companies like DFA or Kraft, even some of the multinationals too like Nestle look at Australia what they must see is ATM taking all but a 10% market share in an extraordinarily short period of time, and within a fresh milk market that has been shrinking for 10 years, and with a 50% price premium on across the counter sales.

The US and Australia are relatively similar markets, much more so than when compared to Europe. Both have large territorial dairy companies with predominantly A1 herds and thus similar uniform levels of BCM7 intolerance. Both fresh milk markets are shrinking and are under similar pressures.

When the big US companies see the A2 Milk Company heading their way, right about now, why would they all not want a piece of that A2 action. But, the only way they can get access to it, is to become the lucky joint venture partner, or, to take an ownership stake.

It’s probable that there is a heightened awareness in the US at present, not only just from all the media releases, but while Geoff and the team are presently talking to incumbents in regard to establishing herd conversions, milk processing capabilities, assigning distributors and working on forward retail agreements.

Who knows what those big US dairy companies may do, but I bet they like A2 ?

[nextbigthing]

Doesn't relate to ATM directly but an interesting read;

http://www.stuff.co.nz/business/farm...-farming-model

[psychic]

ATM stronger today? Has the trend turned?
I'm in

[airedale]

Hoping that it is not a dead cat bounce. But topped up anyway.