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BRIEF-A2 Milk Sees FY21 Revenue Of $1.20 BLN To $1.25 BLN

05/09/2021 16:45
BRIEF-A2 Milk Sees FY21 Revenue Of $1.20 BLN To $1.25 BLN

- A2 Milk Company Ltd ATM.NZ:

  • MORE AGGRESSIVE ACTIONS TO ADDRESS EXCESS INVENTORY WILL BE TAKEN WHICH WILL IMPACT FY21 REVENUE AND EBITDA

  • WILL ALSO INCREASE MARKETING INVESTMENT IN 4Q21

  • BOARD-INITIATED REVIEW BY MANAGEMENT CONDUCTED INTO CHANNEL INVENTORY

  • BOARD ACTIVELY CONSIDERING CAPITAL MANAGEMENT INITIATIVES, INCLUDING POTENTIAL SHARE BUY-BACK & UPDATE TO BE PROVIDED AT FY RESULTS IN AUGUST

  • NOW TARGETING REVENUE FOR FY21 OF $1.20 BILLION TO $1.25 BILLION

  • SEES EBITDA TO SALES MARGIN FOR FY21 OF 11% TO 12% (EXCLUDING MVM TRANSACTION COSTS)

  • TRADING DYNAMICS IN CHINA INFANT NUTRITION MARKET CONTINUE TO BE CHALLENGING

  • CASH BALANCE AT END OF FY21 EXPECTED TO BE BROADLY IN LINE WITH FY20 (EXCLUDING MVM ACQUISITION IMPACT IF COMPLETED IN FY21)

  • REMAINS CONFIDENT IN LONG-TERM OPPORTUNITY THAT INFANT NUTRITION MARKET IN CHINA REPRESENTS

  • COMMENCED COMPREHENSIVE PROCESS TO REVIEW GROWTH STRATEGY AND EXECUTIONAL PLANS

  • DAIGOU/RESELLER MARGIN SUPPORT PROGRAM WILL CEASE

  • REBALANCING INVENTORY WILL NEED TO CONTINUE FOR REST OF 4Q21 AND MAY CONTINUE INTO 1Q22

  • SEES FURTHER STOCK PROVISION OF ABOUT $80 MILLION TO $90 MILLION

  • IN PROCESS OF IMPLEMENTING WHOLESALE PRICE INCREASE ACROSS ITS ENGLISH LABEL INFANT NUTRITION PRODUCT RANGE

  • ALL FIGURES IN NZ$

Source text for Eikon: ID:nNZW29sSrR

Further company coverage: ATM.NZ


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