The gross margins, and thus the net cost per unit production of BAL and A2M products are actually both very good relative to the greater dairy sector, typically around 5 to 10%.
BAL FY15 Gross Margin: 33%
A2M FY15 Gross Margin: 35%
Although, those gross margins for A2M also include costs for the new geographical markets in the UK and US which are long term investments, initially loss making, and like any new business they will take two to three years to become profitable.
One may thus speculate that the gross margins for A2M will be sustainably higher than BAL over the long run, and that A2M margins may increase even further when the US market breaks even.
Strong Growth Drivers, page-12
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