Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

a2 Milk Company Ltd (a2m) Share Price Jumps As Profit Lifts

The a2 Milk Company Ltd (ASX:A2M) share price bounced higher on Wednesday morning after the infant formula and dairy business reported its full-year results.

The a2 Milk Company Ltd (ASX: A2M) share price bounced higher on Wednesday morning after the infant formula and dairy business reported its full-year results.

a2 Milk Company is the name behind the popular a2 protein-only dairy products, such as the Platinum range of goods sold in Australia, New Zealand, China and the USA.

In an ASX filing, a2 Milk Company released its 2018 report showing a 68% increase in revenue and a profit of $NZ196 million, up 115% over the prior year’s result.

“The Company’s financial results maintained a very strong trajectory, with a revenue increase of 68% and with operating earnings up by 101%,” CEO Jayne Hrdlicka said.

Analysts surveyed by Bloomberg had been expecting a profit of $192 million. Therefore, a2 Milk Company’s result appears to be a modest beat on expectations.

New Supply 

The a2 Milk branded infant formula can now be found in 10,000 Chinese stores and 6,000 in the USA, the company said. As with Bellamy’s Australia Ltd (ASX: BAL) and Blackmores Limited (ASX: BKL), a2 Milk’s key growth markets are the emerging markets of Asia, particularly China.

“Significant progress has been achieved in Australia, China and the USA and important emerging market opportunities are starting to materialise,” Hrdlicka added.

Hrdlicka also noted the increased supply agreement with Synlait Milk Ltd (ASX: SM1) and new agreements with Fonterra (ASX: FSF) and Yuhan Corporation.

Unsurprisingly, a2 Milk forecast “further growth” for its nutritional products in ANZ and China, and more sales from Liquid Milk in the USA.

Consistent with its push into China, the company expects to continue investing in its Chinese operations and staff, a market where hundreds of millions of people are expected to grow wealthier in coming decades and enter the middle classes.

a2 Milk Company shares were trading 5% higher on Wednesday morning according to Google Finance.

The Australian Investors Podcast

Join The Rask Group’s founder, Owen Raszkiewicz, as he profiles Australia’s best investors, founders, authors and financial thinkers. Download it free on iTunesCastboxSoundCloud or wherever you choose to listen.

itunessoundcloudcastboxdownload

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content