The a2 Milk Company Limited (ASX: A2M) produces cow milk which is free of a protein called beta casein A1. The Company distributes in Australia, New Zealand, China, Hong Kong, Singapore, the United States, and the United Kingdom.
The company had lately informed the forming of two new positions. Melanie Kansil will join the company as a Chief Commercial Officer in the 1H FY19. Also, Phil Rybinski has been appointed for the role of CTO, effective from April 2019. Both officials join the firm with substantial and diverse experience across a range of consumer-driven industries.
The company expects that rapid growth would continue, however at a reasonable rate as compared to the first four months of FY2019. This would be on account of the rising consumer demand for healthcare and wellness products & positive regulatory outlook. The growth is also expected to be on the back of the food safety standards being elevated as well as traction towards organic products.
For FY 2018, the company registered revenue of NZ$922.70 million, up by a stellar 68% on a YoY basis. This was achieved on account of the impressive sales of “a2 platinum” infant formula across Australia and China along with a constant increase in the market share.
Gross margins improved over the year and were recorded at the NZ$464.30 million up from the previous $263.50 million, registering a change of more than 76% on a YoY basis. This was on account of the better product mix with an increased proportion of infant formula sales as well as favourable foreign currency movements and improving net selling prices.
Thus, considering the impressive sales of “a2 platinum” & growing traction towards organic products, Investors can keep a close look at this stock.
The stock is currently trading at a price of $14.10, up by 3.372% during the day’s trade with a market capitalisation of ~$10 Bn. The stock has provided a YTD return of 31.15% & also posted returns of 36.81%, 40.91% & 16.09% over the past six months, three & one-months period respectively.
