A2M - The A2 Milk Company

[bigdog]

• A2M $10.150 $+1.440 +16.53% @ Wed 21 Feb 2018 10:08 AM (Sydney time)

WOW!!

 

[bigdog]

• A2M closed $11.300 $+2.590 +29.74% @ Wed 21 Feb 2018 8:45 PM

The market loved their half year report!!

 

[notting]

• A2M closed $11.300 $+2.590 +29.74% @ Wed 21 Feb 2018 8:45 PM

The market loved their half year report!!

Unbelievable!

 

[jjbinks]

A2 down 7%

 

[bigdog]

A2M SP crashed today after ASX announcement

• A2M $10.280 $-1.850 (-15.25%

15 May 2018
NZX/ASX Market Release
Trading Update and FY18 Outlook
The a2 Milk Company is pleased to provide the following update on the Group’s trading performance for the 9 months to 31 March 2018, as well as its outlook of the Group’s full year FY18.

Trading performance for 9 months to 31 March 2018
The Company confirms that for the 9 months ended 31 March 2018, Group revenue was NZ$660 million1, up ~70% on the prior corresponding period. This performance reflects continued sales growth in both nutritional products and liquid milk. It also includes the impact of seasonal sales from key China selling events weighted towards 1H18.

FY18 outlook
The Company is anticipating Group revenue in the range of NZ$900 million to NZ$920 million for the 12 months ended 30 June 2018. This takes into account the planned transition to new infant formula packaging during Q4.

Gross margin percentage for the full year is expected to remain broadly consistent with 1H18, given the benefit of throughput efficiencies and currency movements.

The Group’s total marketing investment is now expected to be in the range of NZ$82 million to NZ$87 million for the full year, given higher expenditure primarily in the US and China businesses in 2H18 compared to 1H18.

This information is to be included in an investor presentation to be given by the Company during an investor roadshow in Singapore and Hong Kong from 16 May 2018.

---------------------------------------------------------------------

While this is undoubtedly a strong result, it has fallen short of the market’s lofty expectations for revenue of circa NZ$950 million.

7212

 

[HelloU]

and took synlait with it thru nearology........its the future you bet on not the past. Overvalued? today, yes for probably both, but in 6 months??

 

[galumay]

While this is undoubtedly a strong result, it has fallen short of the market’s lofty expectations for revenue of circa NZ$950 million.

Its not that the result was short of expectations as much as the market held ludicrous expectations for A2M growth, this was baked into the price and so despite a very good result showing strong growth the market finally woke up that its forecast was plain wrong and the price was adjusted to reflect.

I suppose its semantics to some extent, but it annoys me that businesses often get the blame for the errors in valuation of Mr Market!

 

[bigdog]

SP currently up 4.67% following ASX announcement that Blackrock Inc now substantial shareholder

ASX announcement today
A2M 5/06/2018 10:11:30 AM 36 Becoming a substantial holder - BlackRock

BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager with $6.3 trillion in assets under management as of December 2017.[2] BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries.[3] Due to its power and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank.[4][5]

7741

 

[bigdog]

"ATM" a2 Milk Company on NZX is down 7 cents after open in New Zealand (delayed)


12/07/2018 7:30:16 AM 1

FY2018 Trading Update and FY2019 Outlook
https://www.asx.com.au/asxpdf/20180712/pdf/43wgffb9h98j57.pdf

12 July 2018

NZX/ASX Market Release


FY2018 Trading Update and FY2019 Outlook

Further to the trading update released on 16 May 2018, The a2 Milk Company is pleased to advise that unaudited Group revenue for the financial year ended 30 June 2018 (FY2018) totalled ~$922million, representing growth on the prior corresponding period of ~68%. The Company can now also confirm that it expects an EBITDA to Sales ratio for FY2018 to approximate 30%.


The Company has completed its planning cycle for FY2019 and, assuming general trading conditions do not change materially, the Company’s expectations in respect of FY2019 include:

- further growth in revenue particularly in respect of nutritional products;


- marketing expenditure, as a percentage of sales, higher than FY2018 given continuing investment in Australia, re-phasing of 2H FY2018 activities in China and elevated investment to support the US market expansion;


- overhead costs higher than FY2018, primarily due to an increasing headcount for China and the Corporate office to support the increasing scale of the Company;


- one-off costs associated with the transition to a new CEO as recently advised.


Notwithstanding the higher expenditure referred to above, the EBITDA to Sales ratio for FY2019 is assumed to be broadly consistent with the Company’s expectations for FY2018.

 

[bigdog]

ASX Announcement today
https://www.asx.com.au/asxpdf/20180822/pdf/43xjq7kdxy4t45.pdf

Up 13 cents in New Zealand this morning

A2M Results Commentary FY18

9102

 

[bigdog]

Share price was high earlier of $10.90 after ASX announcement this morning

I do hold

 

[bigdog]

A2M SP down today low of $0.55, currently down $0.37

IS THE ACTION OF OUR NEW CEO ACCEPTABLE?

ASX ann 21/09/2018 3:20:38 PM Change of Director's Interest Notice

Our new leader Carla Jayne Hrdlicka sold her shares for $3.991 million

Number disposed
(1) 178,616 Ordinary Shares disposed of on 18/09/2018.
(2) 178,616 Ordinary Shares disposed of on 20/09/2018.

Value/Consideration
(1) AUD $1,978,493.71 received for the on market sale of 178,616 Ordinary Shares using broker facilities.
(2) AUD $2,016,646.09 received for the on market sale of 178,616 Ordinary Shares using broker facilities.

No. of securities held after change
Nil Ordinary Shares.
245,787 Performance Rights.
242,022 Time-Based Rights.

842

 

[Knobby22]

She must think they are fairly fully valued and she wants to buy a new holiday house or something.
Also she will get many more shares than she sold in the fullness of time with the performance rights.

 

[bigdog]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12130288

a2 Milk boss Jayne Hrdlicka sells company shares only two months into job
23 Sep, 2018 2:43pm (NZ time)

a2 Milk's new chief executive has moved to sell all her shares in the company after just two months in the job, causing a stir in the investment community.

Jayne Hrdlicka sold 178,616 shares in a2 Milk last Tuesday, and an equal number of shares on Thursday, for a total of around A$4 million ($4.3 million), according to a notice issued late on Friday to the Australian and New Zealand stock exchanges.

The shares were received by Hrdlicka, who is on a salary of A$1.5m, on the automatic exercise of rights in the company.

The company said in its notice the share sales were to meet Hrdlica's tax obligations and to "fund commitments made by Ms Hrdlicka prior to her taking up employment with the company".

"Ms Hrdlicka retains a relative interest in time-based rights and performance rights," the notice said.

A spokesman for a2 Milk said the 245,787 in performance rights, and 242,022 time-based rights, would take Hrdlicka's holding back over her original stake upon their execution.

Devon Funds executive chairman Paul Glass said Hrdlicka's sales came at a sensitive time for the stock.

"It's a really interesting decision for a new CEO to dump every share she owns, excluding options, just a couple of months into the new job and at a time when there is a lot of uncertainty hanging over the A2's sales channels following the release of new Chinese regulations over e-commerce that come into effect from January 1," Glass said.

"Jane has been exceptionally bullish on the stock since joining, particularly in meetings with institutional investors over the last few weeks," he said.

Last month China introduced a new e-commerce law, with implementation also coinciding with the end of the cross-boarder e-commerce (CBEC) rules.

Research from Craigs Investment Partners estimated about 33 per cent of a2 Milk's infant formula volume flows through the CBEC channel. Craigs said potential for change in the regulation remained an uncertainty for A2 Milk and its supplier, Synlait Milk.

Seeing Hrdlicka sell was "quite staggering" , Glass said.

"This will raise real issues if there are problems in the sales channels due to the new Chinese regulations," he said.

"Investors are paying over 32 times forecast earnings for this stock so it's not one you want to see any negative surprises from," Glass said.

Earlier this month, a2 Milk's chief financial officer Craig Loutit sold his stake down to 350,000 shares from 500,000 in order to fund the exercise price and tax obligations relating to his recent exercise of options to subscribe for shares in the company.

The Motley Fool, the influential Australia-based firm that provides stock research, also weighed in.

While Hrdlicka clearly has valid reasons for the sale of these shares, it was still "very disappointing" to see her offload all her ordinary shares so soon after joining the company at a time when its growth could be challenged due to a maturing Chinese infant formula market, it said.

The share sales by Bellamy's Australia executives before the infant formula maker's fall from grace a couple of years ago is no doubt still fresh in the minds of many investors, it said.

Shares in a2 Milk closed on Friday at $12.51, down from its record high in March of $14.10, but up 107 per cent over the last 12 months.

Under the terms of employment released to NZX, Hrdlicka's salary is A$1.5 million per year, reviewed annually, with a yearly bonus of up to 100 per cent of her salary based on performance against key indicators.

The a2 Milk board can also increase or decrease that by 20 percent on its own assessment of her performance.

Hrdlicka was chief executive of Qantas Airways' Jetstar Group for the past five years and a non-executive director of Woolworths.

 

[bigdog]

Is Jane selling more shares?

Share price down $0.32 (-3.03%) at 11:44 AM today

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12132801

Stock Takes: Questions raised over CEO's a2 Milk share sale

Sharemarket watchers will be familiar with the announcements that come out from time to time from company directors and top management regarding their own shareholdings.

When companies are on the ropes and facing difficult times, it is common to see company insiders buy shares as a gesture of good faith.

And when things are going gangbusters, investors like to see insiders getting into the swim of things and taking on more stock.

Furthermore, they see it is natural when insiders — perhaps after a long stint — pare back their holdings as they prepare to exit.

So when a2 Milk chief executive Jayne Hrdlicka sold her all her head shares in a2 Milk just two months into the job, it caused a backlash.

The trades were declared after the market closed in New Zealand on Friday.

When trade resumed on Monday, the stock was sold down by $450 million on the back of the news.

Hrdlicka's remaining time-based rights and performance rights still leave her with plenty of skin in the game, but the sale raises a few issues.

There are some funds that focus exclusively on the buying and selling patterns of market insiders, and there's academic research to back the idea that they can be an indicator of things to come.

The sale also came at a time when there is some uncertainty emerging about the regulatory environment in China's cross-border e-commerce channel, which as been a big part of a2 Milk's success to date.

Four star
Morningstar has undertaken coverage of a2 Milk, rating it four stars out of a possible five.

In a report, the investment research company said while a2 Milk's highest-growth days were behind it, the company still expected to see solid future gains, with market share opportunities in Chinese infant formula, US fresh milk, and global follow-on dairy products supporting its outlook for nearly 20 per cent of annual earnings growth over the next decade.

"And with minimal capital investment needs, a2 is set to enjoy stellar returns on invested capital and strong free cash flow," it said.

"However, the future success of the firm relies mostly upon developments in the Chinese infant formula market, where we estimate a2 generates nearly 90 per cent of its earnings through both direct sales and third parties," it said.

Morningstar said it expected market share of China's infant formula market to climb to 15 per cent of over the next 10 years from 5 per cent in fiscal 2018, "but continued competition and scientific developments regarding a2 Milk present sizeable risks," it said.

A good look?
Morningstar, which as a "fair value" estimate of $14.60, said a2 Milk looked undervalued.

Adam Fleck, Morningstar's director of equity research for Australia and New Zealand, said the CEO's share sale was a surprise.

"Any time you see insiders, particularly executives who have a significant control over the company's future strategy, selling down shares, you have to ask a lot of questions," he told Stock Takes.

But he said management had done a "terrific job" for shareholders and "we would expect that to continue a lot of that same trajectory".

On the regulatory front, he said a2 Milk and partner Synlait Milk had, in the past, done a good job dealing with the vagaries of Chinese environment.

"For us, it is about the long-term story, and the long-term story is one of Chinese consumers really flocking to high quality premium priced international formula brands will continue," Fleck said. "And we think a2 will be an increasing part of that story."

Morningstar has a three level "stewardship" rating system, and in a2 Milk's case, it rated as management as "standard".

"She (Hrdlicka) is still strongly incentivised to see success in a2 Milk and a one-time transaction like this does not dissuade us from that standard stewardship rating," Fleck said.

"One data point does not a trend make, but we will be keeping an eye on that going forward."

 

[HelloU]

Is Jane selling more shares?

Share price down $0.32 (-3.03%) at 11:44 AM today
View attachment 89501


https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12132801

Stock Takes: Questions raised over CEO's a2 Milk share sale

Sharemarket watchers will be familiar with the announcements that come out from time to time from company directors and top management regarding their own shareholdings.

When companies are on the ropes and facing difficult times, it is common to see company insiders buy shares as a gesture of good faith.

And when things are going gangbusters, investors like to see insiders getting into the swim of things and taking on more stock.

Furthermore, they see it is natural when insiders — perhaps after a long stint — pare back their holdings as they prepare to exit.

So when a2 Milk chief executive Jayne Hrdlicka sold her all her head shares in a2 Milk just two months into the job, it caused a backlash.

The trades were declared after the market closed in New Zealand on Friday.

When trade resumed on Monday, the stock was sold down by $450 million on the back of the news.

Hrdlicka's remaining time-based rights and performance rights still leave her with plenty of skin in the game, but the sale raises a few issues.

There are some funds that focus exclusively on the buying and selling patterns of market insiders, and there's academic research to back the idea that they can be an indicator of things to come.

The sale also came at a time when there is some uncertainty emerging about the regulatory environment in China's cross-border e-commerce channel, which as been a big part of a2 Milk's success to date.

Four star
Morningstar has undertaken coverage of a2 Milk, rating it four stars out of a possible five.

In a report, the investment research company said while a2 Milk's highest-growth days were behind it, the company still expected to see solid future gains, with market share opportunities in Chinese infant formula, US fresh milk, and global follow-on dairy products supporting its outlook for nearly 20 per cent of annual earnings growth over the next decade.

"And with minimal capital investment needs, a2 is set to enjoy stellar returns on invested capital and strong free cash flow," it said.

"However, the future success of the firm relies mostly upon developments in the Chinese infant formula market, where we estimate a2 generates nearly 90 per cent of its earnings through both direct sales and third parties," it said.

Morningstar said it expected market share of China's infant formula market to climb to 15 per cent of over the next 10 years from 5 per cent in fiscal 2018, "but continued competition and scientific developments regarding a2 Milk present sizeable risks," it said.

A good look?
Morningstar, which as a "fair value" estimate of $14.60, said a2 Milk looked undervalued.

Adam Fleck, Morningstar's director of equity research for Australia and New Zealand, said the CEO's share sale was a surprise.

"Any time you see insiders, particularly executives who have a significant control over the company's future strategy, selling down shares, you have to ask a lot of questions," he told Stock Takes.

But he said management had done a "terrific job" for shareholders and "we would expect that to continue a lot of that same trajectory".

On the regulatory front, he said a2 Milk and partner Synlait Milk had, in the past, done a good job dealing with the vagaries of Chinese environment.

"For us, it is about the long-term story, and the long-term story is one of Chinese consumers really flocking to high quality premium priced international formula brands will continue," Fleck said. "And we think a2 will be an increasing part of that story."

Morningstar has a three level "stewardship" rating system, and in a2 Milk's case, it rated as management as "standard".

"She (Hrdlicka) is still strongly incentivised to see success in a2 Milk and a one-time transaction like this does not dissuade us from that standard stewardship rating," Fleck said.

"One data point does not a trend make, but we will be keeping an eye on that going forward."

did give ya fair warning on that email I was sending ......

(no idea here btw)

 

[bigdog]

Is Jane selling more shares?

No another director Peter Bruce Hinton has sold 25000 shares

26 September 2018 NZ$297,856.28 received for the on-market sale of 25,000 Ordinary Shares using broker facilities.

3/10/2018 12:17:23 PM Change of Director's Interest Notice

The SP today is currently $9.79 down $-0.18 or -1.81%

One month SP chart high of $11.91 and low yesterday of $9.95 (down $1.96)

 

[tech/a]

Astute directors

 

[Boggo]

Astute directors

They have probably done a bit of reading on the mess that Jayne left behind in Jetstar Asia and the direction she was heading in Qantas before they saw the light

 

[bigdog]

Jayne Hrdlicka's last job at Qantas was CEO of the Qantas Frequent Flier Loyalty Program
November 2017 – April 2018 6 months
-- No doubt looking for a new job just after starting this exciting Loyalty Program job!!
-- hardly a promotion or what?


Her prior job was CEO Jetstar Group
-- July 2012 – November 2017 5 years 5 months