ATM - A2 Milk Corporation Limited

[BlackPeter]

We have way too many holidays in New Zealand in comparison to the rest of the world. Kiwis take off roughly 7 weeks off per year including special leave. There was even talk about giving kiwi workers more. Have to feel sorry for employers who take off roughly 2-3 weeks off per year I read somewhere.

Probably stuff for some other thread ... and yes, since I am no longer in employment I can see where you are coming from.

Interesting however to note that German companies who have to give their employees probably the longest leave periods in the world (typically 30 days annual leave plus roughly 14 or 15 public holidays per year plus in practical terms unlimited sick leave plus entitlements for time in lieu (for overtime) belong to the most profitable and efficient organisations in the world.

I don't think we need less leave - we need to learn to work smarter ...

[Ggcc]

Probably stuff for some other thread ... and yes, since I am no longer in employment I can see where you are coming from.

Interesting however to note that German companies who have to give their employees probably the longest leave periods in the world (typically 30 days annual leave plus roughly 14 or 15 public holidays per year plus in practical terms unlimited sick leave plus entitlements for time in lieu (for overtime) belong to the most profitable and efficient organisations in the world.

I don't think we need less leave - we need to learn to work smarter ...

This is the last post for me on this as it does belong on a different thread. The Germans are a different culture to the rest of the world. If we had similar work ethics to Germans we would be in a much better position in general regarding work ethic. So you are right as in work smarter

[winner69]

Holidays, productivity, work ethic etc etc always a good discussion.

What we loss track of sometimes is that NZ company performance is rather under whelming

Like figures from the much touted Deloittes Top 200 Awards showed in supplementary data that the Top 200 Companies in NZ (excluding Financials) achieved this in the 2017 reporting year (or as close as possible to that period -

• Revenue growth of 4.3% over the previous year
• EBITDA growth of 2.9% over previous year
• Pre-tax profits were 6.4% less than previous year

So our Top Companies collectively couldn't even grow revenues as fast as the economy (GDP) and made less money than the year before.

Pretty sad really (esp as Deloittes tout this as success) and probably has a lot to do with NZ attitudes to work generally

[Blair]

The branding and packaging is very poor on Fresha Valley milk. It dosent state anything about health benefits and has a small amount of A1 in it. A 2L is $4.90 so not really expensive. Are you sure this is the a2 milk company? I can't find anything on their website saying it's the a2 milk company or that their is a relationship. Personally I wouldn't buy the milk and it doesn't look or seem like a2.

edit: I just found out Fresha Milk is licensed by the a2 milk company to sell into New Zealand. So they pay a fee or commission to a2 but are not at all owned by a2 milk. i still find it bizarre that a 6 billion company that started in ANZ dosent even sell direct into its own market.

To me it seems more like they understood their priorities and had a clear strategy. I also expect that back when they entered into the license agreement, they were not particularly well known here nor were they a $6b company.

But whatever way you look at it, they will be in a stronger position when it comes time to renegotiate the licensing agreement. Whether that means entering the market themselves under a brand which is increasing in recognition or merely using that as a means to get more from the agreement, I guess time will tell.

A similar question was asked at the AGM about where to buy a2 milk. I find it more curious that Fresha Valley doesn't do more to market the benefits. I wonder what the reason is.

[Sideshow Bob]

Any idea when the agreement with Fresha expires?

I wouldnt think it would would be renegotiated. I would think with Synlait taking over the Foodstuffs fresh supply in 2019, it may be the chance to roll A2 local market distribution into this.

[Leftfield]

Any idea when the agreement with Fresha expires?

I wouldnt think it would would be renegotiated. I would think with Synlait taking over the Foodstuffs fresh supply in 2019, it may be the chance to roll A2 local market distribution into this.

The Q&A at the end of the last results presentation seemed to imply that the agreement with Fesha has already expired and is currently rolling on month to month.

There have also been reports (posted previously on this forum) that Fresha is planning (at Resource Consent stage) a new processing plant in the central north island targeting A2 Milk production.

Perhaps Fresha will concentrate on Fresh A2 Milk (and maybe Long-life A2 milk), while SML will supply other powdered A2 products? I don't know where this will end, and while it is good to see ATM keeping its options open, like many posters, I would like to see better A2 marketing in NZ, (though I concede the NZ market is not overly important versus the extremely profitable markets of China and Asia.)

[kizame]

To me it seems more like they understood their priorities and had a clear strategy. I also expect that back when they entered into the license agreement, they were not particularly well known here nor were they a $6b company.

But whatever way you look at it, they will be in a stronger position when it comes time to renegotiate the licensing agreement. Whether that means entering the market themselves under a brand which is increasing in recognition or merely using that as a means to get more from the agreement, I guess time will tell.

A similar question was asked at the AGM about where to buy a2 milk. I find it more curious that Fresha Valley doesn't do more to market the benefits. I wonder what the reason is.

I'm wondering whether fresher valley see the writing on the wall that any groundwork they do spreading A2 through the marketplace,will just eventually be taken off them,after all the footwork has been done?

[NZSilver]

Where will this end up in the next 3 months. Results in mid Feb for hy18, I can see good buying demand up until this date. Also now in the ASX100. My predictions are around NZ $9.30 - $9.50 before results with $10+ if they exceed expectations.

[hardt]

Where will this end up in the next 3 months. Results in mid Feb for hy18, I can see good buying demand up until this date. Also now in the ASX100. My predictions are around NZ $9.30 - $9.50 before results with $10+ if they exceed expectations.

Expecting this to be supressed under $9 till results... which are expected to be excellent ( no margin for error )

the less it runs up to the results the better.

[kizame]

Is gathering momentum,especially with the close in Aus,now it does depend a bit whether the US markets correct as it was a big run up before the weekend,but otherwise looking very promising.
It will have to be a better than expected result I think,never the less I will be gone before then.