A2M 1.42% $6.23 the a2 milk company limited

The Upcoming HY Report, page-201

  1. 4,290 Posts.
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    The example is simply showing the impact of price inflation / rises on the value of IF sales over time.

    $100 spent on IF in China in 2014 would equate to $214 by 2023, if price inflation is around 10% per annum. If you disagree with 10% then substitute your own assumption. However as mentioned this is roughly what food price inflation has averaged in China in recent years.

    If the market breakdown is as described in the doughnut graph in 2014, $55 of every $100 spent would be spent on an international brand.
    Over time, even if the market share of international brands is decreasing as described, the value of this share is still growing due to rising prices.

    It's a useful example as it demonstrates that a gradual decline in market share would not necessarily prevent decent long-term growth in revenue when inflation trends are factored in.
    Last edited by werdplaya58: 10/02/21
 
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