A2M 2.89% $6.77 the a2 milk company limited

"competitive pricing" mentioned a few times in the announcement....

  1. 6,446 Posts.
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    "competitive pricing" mentioned a few times in the announcement. If A2M are committing to buying more, then SML will be able to provide better pricing. Generally cheaper to buy in bulk, right? More efficiencies in scale. That original agreement was put in place when the committed sales volume from A2M would have been significantly less. So I expect this will improve/maintain margins for A2M. The fact that the agreement has been updated well before the due date is a reflection of the significant changes in volumes forecast from A2M over the next few years.

    Not sure I understand your 'marketing' comment. No mention in the announcement and SML don't market A2M products.
 
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