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a2 Milk Company Ltd. (ACOPF)
OTHER OTC:ACOPF
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a2 Milk Company (ACOPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.79B
Dividend Yield0.97%
Average Volume (3M)508.00
Price to Earnings (P/E)36.1
Beta (1Y)0.18
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees488
SectorConsumer Defensive
Sector Strength64
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.08
Shares Outstanding724,019,100
10 Day Avg. Volume160
30 Day Avg. Volume508
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)5.02
Price to Sales (P/S)0.00
P/FCF Ratio26.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.14Price Target Upside-2.10% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
a2 Milk Company Business Overview & Revenue Model
Company DescriptionThe a2 Milk Company Limited, together with its subsidiaries, sells A2 protein type branded milk and related products in Australia, New Zealand, China, other Asian countries, and the United States. It offers its products under the a2 Milk and a2 Platinum brands. The company was formerly known as A2 Corporation Limited and changed its name to The a2 Milk Company Limited in April 2014. The a2 Milk Company Limited was incorporated in 2000 and is based in Auckland, New Zealand.
How the Company Makes Money
a2 Milk Company Earnings Call Summary
Earnings Call Date:Feb 16, 2025
(Q2-2025)
| % Change Since: ―|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with significant revenue growth, market share gains, and strategic product launches. However, challenges such as increased costs impacting EBITDA and market pressures in China were also highlighted. Despite these challenges, the company's outlook remains positive with upgraded guidance for FY'25.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
The a2 Milk Company reported a 10% revenue growth, reaching $893 million, which was at the top end of their guidance range.
Record Market Share in China
Achieved a record high China label IMF market share of 5.3% despite supply constraints.
Dividend Declaration
The company declared its first ever dividend of $0.085 per share, fully imputed and fully franked.
Upgraded FY'25 Guidance
Following strong first half results, a2 Milk upgraded its FY'25 revenue guidance to low to mid-double-digit percent growth on FY'24.
English Label IMF Growth
Achieved double-digit revenue growth in the English label IMF, with revenue growth of 13%.
Expansion and Innovation
Launched new products targeting various life stages and initiated China-based manufacturing for a fortified seniors nutrition range.
Negative Updates
EBITDA Impacted by Costs
EBITDA growth of only 5% due to significant air freight costs to mitigate supply constraints.
Decline in ANZ Segment
The ANZ segment experienced a decline primarily due to lower IMF sales driven by a further decline in the Daigou channel.
Reduced Gross Margin
Gross margin decreased by almost two percentage points due to non-recurring items, including airfreight costs and accelerated depreciation.
Market Challenges in China
Continued market decline and consumer trading down pressure in the China IMF market.
Company Guidance
In a recent call, The a2 Milk Company provided updated guidance for FY25, highlighting strong first-half results that prompted an upgrade in full-year revenue expectations to low to mid-double-digit percentage growth on FY24. The company achieved a 10% increase in revenue, driven by double-digit growth in English label Infant Milk Formula (IMF) and record market share in China label, despite supply constraints. EBITDA grew by 5%, impacted by significant air freight costs, but excluding these, it would have increased by 12% with a margin of 14.2%. Net profit after tax and EPS rose by 7.5%, and the company declared an interim dividend of $0.085 per share. The outlook for the second half remains positive, with stronger-than-expected demand for a2 Platinum and higher Liquid Milk sales, particularly in the US. The company is also focused on its supply chain transformation and aims to achieve profitability in its US and MVM businesses, with a long-term revenue ambition of $2 billion.a2 Milk Company Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.67B | 1.59B | 1.44B | 1.21B | 1.73B | Gross Profit |
| 766.63M | 739.16M | 663.52M | 509.71M | 968.57M | EBIT |
| 202.24M | 201.22M | 177.41M | 126.42M | 547.72M | EBITDA |
| 229.14M | 215.01M | 190.98M | 130.00M | 549.76M | Net Income Common Stockholders |
| 167.58M | 155.64M | 122.62M | 80.66M | 385.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 968.94M | 802.23M | 887.31M | 875.15M | 854.18M | Total Assets |
| 1.73B | 1.61B | 1.72B | 1.37B | 1.45B | Total Debt |
| 66.22M | 101.53M | 124.35M | 16.50M | 16.84M | Net Debt |
| -902.72M | -250.71M | -312.96M | -858.65M | -396.19M | Total Liabilities |
| 478.10M | 462.21M | 521.89M | 288.05M | 319.25M | Stockholders Equity |
| 1.27B | 1.15B | 1.18B | 1.08B | 1.13B |
| Cash Flow | Free Cash Flow | |||
| 235.22M | 101.21M | 198.86M | 83.74M | 421.61M | Operating Cash Flow |
| 255.74M | 111.28M | 203.80M | 89.42M | 427.41M | Investing Cash Flow |
| -37.14M | -13.94M | -669.99M | -64.37M | -29.08M | Financing Cash Flow |
| -49.81M | -178.43M | 9.64M | -1.04M | -11.99M |
a2 Milk Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $3.79B | 36.06 | 13.75% | 0.97% | ― | ― | ||
76 Outperform | $3.35B | 23.14 | 8.40% | ― | 11.47% | 2.59% | |
73 Outperform | $378.86M | 37.53 | 14.73% | ― | 12.84% | -22.88% | |
72 Outperform | $4.63B | 27.28 | 17.73% | 2.20% | 0.69% | 27.48% | |
65 Neutral | $8.88B | 15.01 | 4.76% | 203.76% | 3.54% | -2.49% | |
51 Neutral | $373.80M | ― | -85.68% | ― | 4.56% | 57.03% | |
43 Neutral | $159.75M | ― | -31.83% | ― | -8.50% | -186.18% | |
42 Neutral | $253.89M | ― | 44.21% | ― | -2.19% | 55.86% |
* Consumer Defensive Sector Average
Performance Comparison
ACOPF
a2 Milk Company
5.25
0.63
13.64%
OTLY
Oatly Group
12.49
-7.51
-37.55%
SMPL
Simply Good Foods
33.17
-3.57
-9.72%
BYND
Beyond Meat
3.32
-3.86
-53.76%
HAIN
Hain Celestial
1.77
-5.51
-75.69%
LWAY
Lifeway Foods
24.92
11.89
91.25%
LANC
Lancaster Colony
167.93
-13.90
-7.64%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.