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Highlights
- During FY22, A2 Milk reported a revenue of NZ$1.45 billion.
- A2 Milk has renewed its import and distribution arrangements with CSFA for the next five years.
Shares of New Zealand-based infant formula business A2 Milk Company Limited (ASX:A2M) were spotted trading on the positive side, up 7.779% at AU$5.680 apiece on ASX despite any price-sensitive update by the company (as of 10:39 AM AEDT, 3 November 2022).
With this, both ASX and NZX-listed firm saw a significant increase of 29.95% in its share prices over the last six months. In addition, A2M shares have gained 1.08% on a YTD basis and dropped 9.47% in a year.
Meanwhile, the benchmark S&P/ASX 200 Consumer Staples sector, with a total loss of 238.8 points, is currently trading in the red territory at 12131.7 points (10:47 AM AEDT).
A glance at A2 Milk’s developments during FY22
As per the company’s ASX announcements, below are a few primary developments at A2 Milk Company Limited during FY22:
- A2 Milk published its Select Equities Conference presentation on 27 October 2022.
- A 5-year term renewal of exclusive import and distribution arrangements with China State Farm Agribusiness Holding Shanghai Co., Ltd (CSFA) was announced on 3 October 2022.
- On 30 September 2022, A2 Milk announced to kick-off its on-market share buyback programme from 5 October 2022. Under this 12-month programme, the company will purchase about 37,180,621 ordinary shares (worth NZ$150 million) from both the ASX and NZX markets.
- Before the CSFA renewal, Synlait Milk, the producer of A2 Milk’s China label infant milk formula (IMF), received a renewal notification from State Administration for Market Regulation (SAMR) dated 12 September 2022.
- On 29 August 2022, the dairy firm released its FY22 annual report.
- On 21 February 2022, A2 Milk shared its half-yearly results.
Select Equities Conference highlights
According to the ASX filing dated 27 October, A2 Milk expanded its portfolio of A2 MilkTM based products, such as UHT, ESL, IMF, milk powder, and fresh milk, with the launch of a new product named a2 Platinum® in the Australian market.
A2 Milk reported group revenue growth of 19.8%, with the second half of FY22 being 18.9% stronger than the first half. The company’s EBITDA was 59% up at NZ$196.2 million, alongside a 13.6% increase in EBITDA margin during the fiscal year (16.1% ex-MVM).
In addition, the company’s NPAT recorded a jump of 42.3%, taking it to a total of NZ$122.6 million, including non-controlling interest; this is attributable to the A2 Milk Company’s owners.
With a final net cash position of NZ$816.5 million with a 114% operational cash conversion, A2 Milk's total revenue for FY22 was NZ$1.45 billion.
