A2M 1.50% $5.90 the a2 milk company limited

A2M $3 Party, page-101

  1. 6,577 Posts.
    lightbulb Created with Sketch. 2656
    I'm not sure prices have ever been $100 on tmall store. At $80 A2M is getting 80%+ margins which will not be sustainable in the long term. For now, it is helping establish their reputation as an exclusive/premium supplier. Even at double the Akarola prices around $35 long term, margins will be higher than 35%. These are good margins once the volume can be manufactured. For now, the supply/demand curve allows them to sell at $80 and also increase prices in Australia.

    As A2M is still setting up its new IF business and as far as I understand does not have a lot of capital invested in the business, then it will be able to establish itself with a lean, modern business model, eg. direct sales through tmall and hopefully in the future direct sales from Australia, same as BAL. The Fonterra's of this world should be worried by the likes of Akarola who are setting themselves up as a budget, no frills IF, but A2M will never try to compete in that space. It's against every principle that has established their success.
 
watchlist Created with Sketch. Add A2M (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.