EPS will be 26/27 cents (did you forget about tax.)
So
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Since when are overheads going to remain static for a growing consumer goods business expanding through physical locations in China... costs remaining inline with revenues...
Fonterra deal introducing many new products to market will require significant marketing expenditure... they should have around half a billion $$$ on hand right now as well.
A2 have been conservatively managing expectations since I can remember, the last dip was a result of some hype and not the company, although explained through label transitioning it will need to be confirmed later this year.
The lower than expected revenue guidance has been attributed to A2M's move to both new CFDA registered Chinese and English labelled packaging. Due to this transition, A2M has intentionally been running down stock levels so that distributors aren't left with the old packaging and to limit the chance of discounting (A2M’s premium status is the key to its success). Importantly, management said that Nestle's new A2 infant formula (called Atwo), while only early, has had no noticeable impact on its sales.
No one really listens to the evangelical holders anyway...
Will be interesting how the market reacts to this update, 922 mill(Unaudited) I thought they would do better than this to be honest. A bit of a nothing update IMO.
A bit disappointed with $922mil so interested to what the market is deciding on. But even then the shares I have left will stay with me for a long time or until something dramatic changes. Won't sell just because of some millions off my own assumptions.
just woke from my catnap and was shocked with this news .... bad and revenue growth was acheived from discounting as well according to goldmans.
be interesting if the price collaspses today , the fact it has struggled to get over $12 resistance and has been in a downtrend since the highs also the slight rise of late has coincided with some light short covering. be interesting to see .... fill the gap lol