ATM-A2 MILK

[KW]

It may have something to do with A2 needing to maximise its own assets and brand, rather than just licencing the brand to Fonterra.  Especially now that Fonterra is selling off its brands to competitors.  This might have triggered a break up clause in the contract. 

New Zealand dairy cooperative Fonterra has said it will discontinue the production of its Anchor A2 milk and organic milk offerings for local consumers.


This pivot aims to concentrate efforts on the rapidly expanding lactose-free dairy segment, which has emerged as the fastest-growing category in the country, following protein.

A company spokesperson confirmed that the decision to phase out the A2 milk range aligns with the co-operative's broader focus on enhancing its Anchor Zero Lacto product line.

This shift follows impressive double-digit growth in sales of the Anchor Zero Lacto 1L Fresh, prompting Fonterra to expand the portfolio to include 2l fresh and 1l UHT formats.

"This strategic move by the co-op's Oceania consumer business reflects our commitment to meeting consumer demand for lactose-free options," the spokesperson stated. "While Anchor A2 Milk will no longer be available, consumers can still find A1 protein-free fresh milk from other suppliers."

It would seem to be a pre-sale cull of non or low performing products, in order to make the books look better for the sale. 

[Minimoke]

Well, Time to take some off the table. Which I did today at $9.14.

And I will congratulate myself on being such a greater investor when I originally bought these at $8.16 while simultaneously ignoring the ones I bought at a higher price.

Time to off load some more today at $9.99. These were bought at $8.66 and $7.85.

Remainder of holdings still have me well in the positive - but a good chance to reduce my over weight exposure here.

Now to find a place to stash the cash as deposit rates don't look good at all.

[seaweed]

Time to off load some more today at $9.99. These were bought at $8.66 and $7.85.

Remainder of holdings still have me well in the positive - but a good chance to reduce my over weight exposure here.

Now to find a place to stash the cash as deposit rates don't look good at all.

SPK and FSF are looking good with big divs just around the corner.

[Minimoke]

SPK and FSF are looking good with big divs just around the corner.

Looks liek those divies are already baked into the SP

[Sideshow Bob]

Another 3.5% jump today to $10.67. Popped on ASX market opening.

[Minimoke]

A2 confirming purchase of Pokeno

"With full ownership we gain strategic control over two China label registrations, which we plan to relaunch under The a2 Milk Company brand within 12-18 months, with access to a potential third registration slot over time (all subject to China regulatory approvals). The Pokeno facility is world-class with a proven track record of producing high-quality infant milk formula including our English label products, a2 Gentle Gold(tm) and a2 Genesis(tm)."

[Minimoke]

Sale of Mataura confirmed to day, effective end of month. One step closer to the $300m special dividend

[Waltzing]

After all these years is there any science papers on this protein.. ?

Just asking... blind studies.. must cost millions to test something like this...

[Minimoke]

After all these years is there any science papers on this protein.. ?

Just asking... blind studies.. must cost millions to test something like this...

"A2" is easier to say than "A1 Free". And there isno shortage of works on the problems with A1.

For example this one ("reports linking A1 casein to diseases such as type 1 diabetes, heart disease, and autism.)
https://pmc.ncbi.nlm.nih.gov/articles/PMC10806982/

[mfd]

I wonder if A1 milk will come under investigation by the MAHA movement. Looks like a much more likely suspect at causing autism than paracetamol which has an extremely small risk associated with it, if any.

[Minimoke]

Nice wee upgrade today. Now looking at low double figure growth.

Infant Milk Formula (IMF), Other Nutritional's and Liquid Milk product categories trading stronger than expected

Currency fluctuations in A2's favour

English label IMF revenue growth expected to be significantly higher than China label IMF revenue growth

NPAT to be slightly up on $202.9m

I'm looking at off loading some more shares so hopefully SP will turn around and start climbing again

[KW]

China clocked its lowest birth rate on record in 2025 as its population shrank for the fourth year in a row, deepening a demographic challenge that could drag on the world's second-largest economy for decades to come.
The rate fell to 5.63 births per 1,000 people in 2025, beneath 2023's low of 6.39 per 1,000, China's National Bureau of Statistics reported on Monday. The drop suggests that a slight uptick in births in 2024 was an outlier rather than a reversal of an otherwise steady decline since 2016.

The question is whether A2 can grow its market share faster than its market shrinks?

[Minimoke]

It is

China clocked its lowest birth rate on record in 2025 as its population shrank for the fourth year in a row, deepening a demographic challenge that could drag on the world's second-largest economy for decades to come.
The rate fell to 5.63 births per 1,000 people in 2025, beneath 2023's low of 6.39 per 1,000, China's National Bureau of Statistics reported on Monday. The drop suggests that a slight uptick in births in 2024 was an outlier rather than a reversal of an otherwise steady decline since 2016.

The question is whether A2 can grow its market share faster than its market shrinks?

ATM is working on growing market share by introducing products aimed at the elderly

[Left Field]

China clocked its lowest birth rate on record in 2025 as its population shrank for the fourth year in a row, deepening a demographic challenge that could drag on the world's second-largest economy for decades to come.
The rate fell to 5.63 births per 1,000 people in 2025, beneath 2023's low of 6.39 per 1,000, China's National Bureau of Statistics reported on Monday. The drop suggests that a slight uptick in births in 2024 was an outlier rather than a reversal of an otherwise steady decline since 2016.

The question is whether A2 can grow its market share faster than its market shrinks?

Interesting....  it seems that the major infant formula product recalls by Nestle and  other European Manufacturers may indeed lead to further gains in Chinese Market share for ATM.

https://www.scmp.com/news/hong-kong/health-environment/article/3341139/hong-kong-authorities-find-toxins-4-batches-milk-formula-recalled-nestle


(Disc - don't hold ATM. Have a small holding in FSF. )

[Minimoke]

Seems the love for A2 is a bit lost. I'm still holding more than my fair sahre and remain intersted in theri progress.

Heres a lazy cut and paste from yesterdays announcement

The a2 Milk Company ("the Company", "a2MC") today reported strong first half1 financial and operational results and upgraded
FY26 full year guidance.
1H26 Results2,3
1. Strong revenue and EBITDA growth with underlying4 EBITDA % margin improvement
2. Achieved Infant Milk Formula (IMF) revenue growth of 13.6%, driven by: - English label IMF growth of 20.9%, with growing contribution from a2 Genesis™ and new markets - China label IMF growth of 6.5%, achieving record market share
3. Accelerated Other Nutritionals growth of 42.9%5, through recent kids and seniors product innovation, entered paediatric
supplements category and developed new kids fortified UHT product for launch in 2H26
4. Delivered strong growth in Liquid Milk of 18.5%, driven by core products and lactose free and grassfed innovations
5. Advanced supply chain transformation with completion of a2 Pokeno acquisition, Mataura Valley Milk divestment and
long-term Fonterra milk supply agreement – enabling a2MC to build a higher growth, more profitable and lower risk 
end-to-end-business. Key transformation streams, including the China label registration amendment process and a2
Pokeno facility and capability upgrades are on track
6. Upgraded FY26 outlook driven by strong performance across all segments and products
Key financials and FY26 outlook2,3,6 
• Revenue up 18.8% to $993.5 million, driven by strong performance across all segments and products, with growth
primarily from core products supported by recent innovation and slightly benefiting from FX and a2 Pokeno sales
• China & Other Asia segment revenue up 20.3%, ANZ up 8.6% and USA up 29.0%
• EBITDA up 18.4% to $155.0 million, with underlying4 EBITDA up 25.9%
• EBITDA % margin of 15.6% consistent with prior year, with underlying4 EBITDA % margin of 16.6% up 0.9ppts
• Net profit after tax (NPAT) up 9.4% to $112.1 million, with underlying4 NPAT up 19.6% 
• Basic earnings per share (EPS) up 9.2% to 15.5 cents, with underlying4 EPS up 19.4% to 16.9 cents
• Closing cash of $896.9 million, with operating cash conversion of 90.8%7 
• Interim dividend of 11.5 cents per share declared, unimputed and fully franked (~74% NPAT payout)
• FY26 revenue growth guidance increased from low double-digit8 percent to mid double-digit8 percent with improved
EBITDA % margin range expected (see full FY26 Outlook in the "1H26 Interim Results Commentary and Outlook"
announcement)