And a 52 week high ....that's very good too
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https://www.nzx.com/announcements/402600
The a2 Milk Company (“a2MC” or the “Company”) is today hosting its Annual Meeting in Auckland, New Zealand. During his address to shareholders, David Hearn, Chair of the Board, will announce that he intends to stand down as a Board member and Chair at the next Annual Meeting in November 2023, as he comes to the natural end of his term as a Director after nine years on the Board.
As a result, and in order to ensure a smooth transition, the Board has spent significant time recently considering the best replacement for the Chair. After that due consideration the Board has come to the unanimous conclusion that Pip Greenwood, who has been on the Board for over three years, has both the skills and importantly the experience to take over from David Hearn at that time.
Mr Hearn said: “Whilst I recognise that we have had some turbulent times recently, it is an extraordinary experience to play a part in the development of this amazing business. I consider it a personal privilege to serve as your Chair and I want to take this opportunity to thank you for your support both for the Company and me personally.”
“Not only will Pip bring her excellent skills to the role, but importantly this plan also represents a balanced blend of Board refreshment together with continuity, which we believe is absolutely appropriate after a period of significant change at both Board and Executive Leadership Team levels within the business,” said Mr Hearn.
By order of the Board of Directors
$7 here we come...
- Having regard to year-to-date currency movements and should currency remain at prevailinglevels, full year reported revenue is likely to increase to low double-digit growth compared toprevious guidance of high single-digit growth. The Company also reiterates its guidance that1H23 growth (on 1H22) is expected to be significantly higher than 2H23 growth (on 2H22)
Isn't that a downgrade of sorts
Sales growth only 12%/12% instead of 17%/18% .... quite a difference v expectations
In addition they said '..EBITDA margin (% of sales) is expected to be similar to prior year
compared to previous guidance of a modest improvement' - so no margin improvement
That's about $20m ebitda less than expected
Seems market seen it this way as well today
I read low double digit growth to be like 12-13% compared to high single digit growth which is 8-9%. I leave you to figure out which one is bigger growth number. While EBITDA margin remain to be same, higher revenue will result in higher EBITDA $, higher NPAT $ and therefore higher EPS and even higher EPS with less outstanding shares (due to buy back).
I take it as positive, today's price movement is probably due to profit taking / friday trading and general market sentiment.