A2M appoints a new leader to its Greater China team

A2M

a2 Milk announced the appointment of new Chief Executive to take the realm of its Greater China segment for strengthening the company’s market position in dairy-based nutritional products across China.

In the announcement dated 25 March 2019, a2 Milk Company Limited (ASX: A2M) announced that Li Xiao has been appointed to the role of Chief Executive Greater China with effect from 29 April 2019.

Li Xiao brings in his expertise in building businesses of a diverse range of multinational and fast moving consumer goods’ companies including Nike, Mars, Burger King and Kids Entertainment Division at Wanda Group.

Commenting on the appointment of Li Xiao, Managing Director & Chief Executive Officer of a2M, Jayne Hrdlicka stated that Li Xiao will be great addition and strong fit to the company’s management and its unique culture as he brings in his long track record of outstanding results achieved by finding innovative pathways to building businesses across multiple consumer categories in China.

In the line of hierarchy, Mr Xiao is said to report the Chief Executive Asia Pacific Peter Nathan directly along with keeping the Group’ Managing Director & Chief Executive Officer Jayne Hrdlicka in a loop.

Li Xiao will sit in Shanghai at the executive level of a2M’s senior leadership team. He is entrusted with the responsibility of deriving the greatest possible benefits from the opportunities present across the Chinese market. Initially, Mr Xiao has reportedly been asked to focus on the company’s current well-developed strategy and preparing for future growth opportunities across Greater China.

The company recently reported 50.1% growth in its China and other Asia’s revenue to NZ$171.7 million for the first half of Fiscal 2019 compared to the previous corresponding period. The Group has achieved over 83% growth in its China label revenue through Mother Baby Stores (MBS) on the back of its unique multi-channel strategy.

In the first half of FY2019, a2M invested strongly in both external and internal capability to better understand the Chinese market, consumers, channel dynamics and methods of improving brand awareness.

Going forward, the company intends to reinvest the benefit of scale into increased marketing activities in the second half with the focus on advancing the company’s brand awareness in China and the United States.

a2M expects its revenue growth rate in 2HFY19 to be in line with 1HFY19 on the back of increased investment in marketing and brand building in 2HFY19, FY20 and beyond. However, the second half EBITDA margins are expected to dip slightly lower than the first half which could eventually result in the full year FY19 EBITDA margin to reach approximately 31-32% as a percentage of sales.

A2M stock price declined by 0.522% to close at $13.340 on 25 March 2019. The stock last traded at a price to earnings multiple of 41.680 x with a market capitalisation of $9.83 billion. Over the past 12 months, the stock has gone up by 2.68% including a massive momentum of +33.30% in the past three months.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report