Ann: 1H23 Results Presentation, page-81

A2 Milk (ASX: A2M) $6.49

A2M -8.59%: the milk products company struggled today after disappointing outlook comments at their 1H result. Revenue of $783m was in line with expectations while Net Profit After Tax (NPAT) was around 5% below consensus, coming in at $74m vs $77m expected. Asian revenue was strong, up 54%, despite the total Chinese market volume falling 11% on slowing birth rates. China label infant formula revenue climbed 43.5% in the half. Revenue from the US market jumped 61.8%, in contrast, the ANZ segment fell ~25%. The company maintained revenue guidance of low double-digit growth, in line with expectations, however, EBITDA margins are expected to remain flat, dropping down to a ~5% miss to consensus. Shares were trading near 18-month highs ahead of the result, so the slight miss triggered a more significant fall in the share price today.