Media Updates, page-15168

38 minutes agoA2M to rise on forecast-beating earningsValerina ChangarathilA2 Milk’s forecast-beating interim results are being welcomed by analysts and investors with shares up more than 10 per cent on the NZ exchange, setting it up for a strong day on the ASX too.A2M’s first-half profit lifted 7.6 per cent to $NZ91.7m. Earnings before interest, taxes, depreciation and amortisation increased 5 per cent to $NZ118.9m with an EBITDA margin of 13.3 per cent. Market analysts had expected EBITDA of $NZ117.5m and net income of $NZ81.3m.At Wilsons Advisory, analysts James Ferrier and Declan Carroll said A2M is progressing well against its strategic priorities and market share gains across multiple channels in China demonstrates effective brand management. “Our Market Weight rating is under review as we consider likely earnings upgrades and reassess valuation.” Their note said it was a “robust result, driven by higher revenue growth”. “Guidance upgrade confirms ongoing effective execution despite subdued China market conditions.”At Citi, Sam Teeger and others said the result “demonstrates excellent execution across the business” and reiterated its buy rating. The profit was 8 per cent above Citi’s estimates and 10 per cent over Visible Alpha forecasts, “a reasonable quality beat with revenue up 10 per cent (VA Consensus +7 per cent), excellent cash conversion and strong execution reducing in losses from the US and MVM”.The first ever dividend of NZ8.5c was also higher than market expectations of 7.2c. Shares in A2M last at $5.95 on the ASX.

From The Australian