ATM-A2 MILK

[winner (n)]

Global disruptions and local production not up to scratch = PROFIT DOWNGRADE

Not surprising

https://announcements.nzx.com/attachment/466323.pdf

[BlackPeter]

Global disruptions and local production not up to scratch = PROFIT DOWNGRADE

Not surprising

https://announcements.nzx.com/attachment/466323.pdf

Oh dear - revenues growing slower, earnings dropping, so called one-off costs but on the other hand - risks are rising. Isn't this what markets love?

[KW]

Global disruptions and local production not up to scratch = PROFIT DOWNGRADE

Not surprising

https://announcements.nzx.com/attachment/466323.pdf

Sounds to me like China is up to its old tricks.  Increase regulatory scrutiny, testing requirements, customs delays - all designed to put the brakes on imported product and redirect consumers to buy domestically produced product.  Especially since the number of Chinese babies is the lowest on record.  Got to absorb that Chinese made formula somehow. 

[BlackPeter]

Sounds to me like China is up to its old tricks.  Increase regulatory scrutiny, testing requirements, customs delays - all designed to put the brakes on imported product and redirect consumers to buy domestically produced product.  Especially since the number of Chinese babies is the lowest on record.  Got to absorb that Chinese made formula somehow.

I guess that's just the problem if you decide to make one of the superpowers your nost significant market. No reason to complain about a superpower doing what superpowers seem to be allowed to do. I guess - at least do the Chinese not bomb innocent people in foreign countries, as e.g. Trump and Putin love to.

Clearly - A2 is basically just living off one single market (well, ingood times) - without ever having properly understood the market and the risks. Sure - they put lots of effort into pointlessly maximising the CEO's salary instead of establishing a well managed company with sensible risk management. The point is not about the Chinese, it is just a dumb and incompetent board blindly stumbling from one risk to the next and adding some more issues themselves.

[Minimoke]

"The final step in the process for these registrations to be used as a2MC branded products is to apply for State Administration for Market Regulation (SAMR) approval which will be submitted in December 2025 with the review process expected to take approximately six months to complete."

So that lines up for June 2026. In the past 3 months A2's SP has dropped 44%. Are we seeing insiders at play!

[Left Field]

ATM receives SAMR approval and talks about a $300 mill special dividend payment.

https://www.nzx.com/announcements/474755

As indicated at the time of the a2 Pokeno acquisition and following receipt of the required regulatory approvals in connection with the Company's China label registrations, it is expected that the Board will convene soon with the intent to declare a $300 million special dividend that will be fully franked and unimputed. The timing of payment and other details will be confirmed in a separate announcement once the special dividend has been declared by the Board.

[Minimoke]

I presume the market was either getting jittery over the lack of SAMR news or the SP was being manipulated as per usual A2M activity. Hence the drop in SP over the past couple of months. That wee product recall wasn't listed as price sensitive - so it cant have been that. So hopefully today we will see it soar back to where it has been recently

$300m = around $0.41 a shrae special dividend. (we should see a 5% recovery today. Hopefully!)


You cannot view this attachment.

[Left Field]

Crikey, this will please holders.....

The a2 Milk Company (the Company, a2MC) confirms the Board has now declared a $300 million special dividend that will be fully franked and unimputed to be paid on 24 July 2026.
 
 The declaration of the special dividend follows a2MC's announcement on 22 June 2026 that it had received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula product registrations acquired in connection with the a2 Pokeno facility to a2 branded products.
 
 Chair, Pip Greenwood said: "With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management."
 
 The key details regarding the dividend are outlined below (more details in the table in the attached).
 
 Total paid: NZ$300,000,000
 Cents per ordinary share: 41.36
 Imputation: 0%
 Franking percentage: 100%
 Franking credit - cents per ordinary share: 17.72
 Ex-dividend date: 8 July 2026
 Record date: 9 July 2026
 Payment date: 24 July 2026

[Minimoke]

Crikey, this will please holders.....

The a2 Milk Company (the Company, a2MC) confirms the Board has now declared a $300 million special dividend that will be fully franked and unimputed to be paid on 24 July 2026.
 
 The declaration of the special dividend follows a2MC's announcement on 22 June 2026 that it had received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula product registrations acquired in connection with the a2 Pokeno facility to a2 branded products.
 
 Chair, Pip Greenwood said: "With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management."
 
 The key details regarding the dividend are outlined below (more details in the table in the attached).
 
 Total paid: NZ$300,000,000
 Cents per ordinary share: 41.36
 Imputation: 0%
 Franking percentage: 100%
 Franking credit - cents per ordinary share: 17.72
 Ex-dividend date: 8 July 2026
 Record date: 9 July 2026
 Payment date: 24 July 2026

No surprise. Just a matter of timing. And we get teh 5% lift this morning

[Minimoke]

The value of having a diversified product range shining through. Despite supply chain issues A2 on target this financial year
- Revenue of approximately $1.97 billion, up over 12% on FY25 (April Guidance was low to mid double-digit growth)
- EBITDA % margin to be at the high end of the April Guidance of 14.0% to 14.5%
- NPAT to be slightly up on FY25 reported (April Guidance was similar to down) with Underlying NPAT expected to be up
- Cash conversion to be approximately 70% (April Guidance was 50%)



Insiders have been busy the last couple of days


"The a2 Milk Company Limited (the Company, a2MC) provides a supply chain update in relation to its China infant milk formula (IMF) business and an update on its preliminary unaudited FY26 results.

Supply chain update

On 13 April 2026, the Company provided a Trading, Supply Chain and Outlook update that noted shortfalls of China label IMF product at distributors and retailers that would materially impact in-market product availability during 4Q26. These product shortfalls were due to a number of factors, including strong demand in the preceding quarter, freight challenges, Synlait production backlog, extended product release times, and additional customs clearance requirements and testing measures.

The Company confirms that China label IMF product availability was materially impacted by these factors in 4Q26, which necessitated a large proportion of existing users to switch to alternative brands, with some users switching to a2 English label products. The product availability impact on English label IMF product was limited and largely concentrated on a2 Genesis , which was affected by planned production downtime at a2 Pokeno and a change in China importation requirements.

The contributing factors to the product availability issues have now substantially been resolved, and product flows to distributors and retailers have materially improved across China label and English label products with stock levels returning to target levels. The Company is now focused on various sales and marketing initiatives to encourage previous China label IMF users to return while accelerating new user recruitment with its retail and distribution partners.

Preliminary FY26 results

The supply chain issues materially impacted China label IMF sales in 4Q26, with FY26 sales down approximately 14% on FY25. All other a2MC product categories, including English label IMF, Other Nutritionals and Liquid Milk, have performed strongly and are significantly up on FY25.
 
Based on preliminary unaudited financial results (which are subject to finalisation and external audit), the Company expects to deliver FY26 results in line with, or slightly ahead of, the guidance range previously announced on 13 April 2026 (April Guidance) (expressed on a continuing operations basis):

• Revenue of approximately $1.97 billion, up over 12% on FY25 (April Guidance was low to mid double-digit growth)
• EBITDA % margin to be at the high end of the April Guidance of 14.0% to 14.5%
• NPAT to be slightly up on FY25 reported (April Guidance was similar to down) with Underlying NPAT expected to be up
• Cash conversion to be approximately 70% (April Guidance was 50%)

The Company will release its FY26 audited results and FY27 outlook commentary on 17 August 2026."