AgM update, page-54

1H20
• For 1H20, we anticipate revenue in the range of $780 million to $800 million with growth demonstrating strong performance against strategy:
− China label infant nutrition sales forecast to be approximately $135 million representing a growth rate of ~84%
− CBEC1 infant nutrition sales forecast to be approximately $155 million2 representing a growth rate of ~54%
− ANZ English label infant nutrition sales forecast to be approximately $350 million representing a growth rate of ~9%
− US sales forecast to be approximately $27 million representing a growth rate of ~110%
− Australia fresh milk sales forecast to be $75 million representing a growth rate of ~12%
• EBITDA margin % in 1H20 is expected to be higher than FY20 and in the range of 31-32% as a result of:
− Increased cost of goods (including lactoferrin and packaging materials) in 2H20 and increased levels
of strategically important trade marketing activation in China
− Phasing of marketing and capability investment slightly weighted to 2H20; full year marketing
investment expected to be approximately $200 million

God I love this company, JH has continued Geoff B's delivery of a surprise at AGM method which must really p*ss off the Insto's

However our Short holders will seize on the statements below and say they have put off spending until 2H20 and therefore the results are below consensus....

• EBITDA margin % in 1H20 is expected to be higher than FY20 and in the range of 31-32% as a result of:
− Increased cost of goods (including lactoferrin and packaging materials) in 2H20 and increased levels of strategically important trade marketing activation in China
− Phasing of marketing and capability investment slightly weighted to 2H20; full year marketinginvestment expected to be approximately $200 million

Hold on for a wild ride