ATM - A2 Milk Corporation Limited

[minimoke]

At had over $240m cash at end of december. Not a bad way of spending some of it. (bet they have added to that in the meantime!)

[minimoke]

Jeez this market is a bloody tough sandpit to be playing in at the moment. Seemingly good news and all we get is a 0.02% rise to $10.44 at the moment.

[sb9]

https://www.ruralnewsgroup.co.nz/dai...2-milk-success

[kiora]

At had over $240m cash at end of december. Not a bad way of spending some of it. (bet they have added to that in the meantime!)

Hmmm,not so sure investing in manufacturing better than retailing/marketing.Can't think of an example when it has. Synlait manufacturing margin is 10% ,outlook 15%?,ATM 33%,outlook 31%?

[minimoke]

https://www.ruralnewsgroup.co.nz/dai...2-milk-success

Of course it wil be a suces. We have so many digestive tract problems, ADHD kids, autoimmune problems the worried wealthy will flock to this new product.

[kiora]

https://www.ruralnewsgroup.co.nz/dai...2-milk-success

Struth!
Fonterra A2 milk sourced from only 1 farm!Hope it has great bio security in place !

[mshierlaw]

Hmmm,not so sure investing in manufacturing better than retailing/marketing.Can't think of an example when it has. Synlait manufacturing margin is 10% ,outlook 15%?,ATM 33%,outlook 31&?

Totally agree, ATM is not a milk processing business, better things to spend $$$$ on IMHO.

[Beagle]

ATM very recently re-inked a multi year supply contract with Synlait. We are not privy to the margin that Synlait will be making on those new supply arrangements but ATM is. (Just a thought).

[Sideshow Bob]

I have seen quoted that Fonterra's A2 is about 50c/litre dearer than other premium Anchor brands. Presumably somewhere around this figure is A2's royalty out of it?

Supply out of 1 farm is interesting and constrained in the short term, but must have plans to scale up with demand? Challenge Fonterra have is that they aren't paying a premium for A2 over standard supply otherwise puts into question their other supply and their previous stance. But between no supplier premium and also their own 'processing margin' then must be able to supply cheaper than A2/Synlait - but then pay a royalty. I'm sure Fonterra have some way around the supplier premium conundrum.....

[RGR367]

Did not see any 2 litter Anchor/A2 brand at Porirua Pak N Save today and they only have 3 remaining bottles on 1 litter A2/Anchor too. The demand must be really good.