Well there WERE plenty available at 46!
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While I m happy with the sp recovery today, I m a bit worry it's HY report as au$ dropped quit a bit against NZ$. This must affect their profit. Hopefully uk us and China can make it up.
The drop in farm gate milk prices should offset or probably more than offset the move in AUD. I think the market will be quite pleasantly surprised with that actually as not many seemed to have clicked onto it just yet.
China should have moved ahead simply because infant formula shipments have resumed, and we will also see initial fresh milk air freight revenues from China coming through.
Hopefully some pickup in the UK too, a2 retail prices have stepped up and are higher than HY14, usually a good sign that doesn't generally happen without steady or increasing volume.
All that on top of the advice we have already that AUD revenues were up 38% in the first four months.
The market is a dull animal at times, but well, it presents such opportunities for investors to profit from the fickle.
I would certainly hope so as we sell next to nothing in NZ ! Fresh milk and infant formula into China and progress in the UK is what I will be most interested in when we get the report. A report I am very much looking forward to receiving. Hope it will make my recent top ups prove profitable :mellow:
Not sure whether you could find A2 fresh milk in any grocey store in Shanghai (perhaps try downtown area). An ordinary 1L bottle costs about NZD12.00 online while we pay only < $5 in NZ. Give my highest praise for the importers who are confident to sell a bottle of milk at such price level in China.
Nevertheless, based on Chinese population (1.4b) so let's presume even 0.3% of them (the richests) drink A2, that's 4.2m human-being. No chance NZ market could beat that, could Aussie (by 10% of their population)?
http://www.yaxp.com/product/physical/2391.htm
Apologies for such a random thought, it may even be that lower oil/fuel prices will be starting to benefit a2mc also to a certain extent, given they are a major distributor of processed milk products in Australia, whether directly or by contract, then there is potentially lower forward ocean going freight and airfreight to China also for that budding segment.
Freight costs at FY14 were $7.9M
Possible but more likely freight firms will not cut their price to much as they try to return to normal margins. Herd Craig's the other day saying they think ATM will be hit hard on Aussie dollar so if results prove this wrong and uk shows unusual growth then $3 here we come.