ATM the a2 milk company limited

Ann: FORECAST: ATM: ATM performs ahead of plan, updates forecast

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    • Release Date: 17/11/15 12:39
    • Summary: FORECAST: ATM: ATM performs ahead of plan, updates forecast
    • Price Sensitive: No
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    					ATM
    17/11/2015 12:39
    FORECAST
    PRICE SENSITIVE
    REL: 1239 HRS The a2 Milk Company Limited
    
    FORECAST: ATM: ATM performs ahead of plan, updates forecast
    
    The a2 Milk Company performs ahead of plan, updates forecast
    
    The a2 Milk Company Limited ("a2MC" or "Company") has made a very positive
    start to the 2016 financial year with the first four months' trading
    performance for infant formula well ahead of plan. As a result the Company is
    today issuing revised earnings guidance upwards for the full year.
    
    The Company previously advised that Group revenue was forecast to grow to
    $267 million and Group operating EBITDA  to $12 million in the 2016 financial
    year.  Based on current trading trends, the Company has determined it
    appropriate to revise its full year outlook upwards, and is now forecasting
    Group revenue of $285 million, and Group operating EBITDA of $22 million .
    
    The Company will continue to monitor its performance and provide further
    commentary with the release of the first half trading results.
    
    At the Company's annual meeting of shareholders today, a2MC Managing Director
    & CEO Geoffrey Babidge said, "the Australian and New Zealand ("ANZ") business
    continues to perform exceptionally well with fresh milk growing and a2
    Platinum(R) infant formula significantly ahead of plan. The new supply and
    distribution arrangements in China are also yielding positive results with
    sales growth for infant formula exceeding expectations".
    
    Mr Babidge said, "Infant formula is emerging as a more significant growth
    driver for the Company. Group revenue for a2 Platinum(R) infant formula in
    the four months to 31 October 2015 totalled approximately $38 million,
    representing 47% of Group revenue, compared to $8.7 million over the same
    period last year. This compared to infant formula revenue for the 2015 full
    year of $41.7 million. This exceptional performance indicates the increasing
    appeal and growth potential for the a2 Platinum(R) brand in both ANZ and
    China and additional markets in the future".
    
    The a2 Milk(TM) launch in the USA market is progressing although sales are
    behind budget given delays in achieving targeted distribution. The Company
    has recently achieved retail weighted distribution of approximately 65% in
    Southern California and is on track for similar levels in Northern
    California. At this early stage, rate of sale is meeting retailer
    expectations within the specialty milk category. The business in the UK is
    continuing to build beyond its modest fresh milk base with the product
    portfolio extending into UHT milk and infant formula.
    
    The Company recently completed a successful capital raising of $40 million
    which is being followed by a Share Purchase Plan currently on offer to all
    eligible shareholders, in Australia and New Zealand that is already
    oversubscribed. The new capital will be used to support a2MC's continued
    growth in ANZ and its targeted international markets, and will primarily fund
    the increasing working capital associated with the growth in infant formula.
    
    The dual listing of the Company on the ASX earlier in the calendar year has
    successfully achieved the objective of broadening investor participation.
    Since admission to the ASX the number of investors in Australia has increased
    by ~3,500, which currently represents ~40% of shares on issue.
    
    For more information:
    Geoffrey Babidge
    Managing Director & CEO
    The a2 Milk Company Limited
    +61 2 9697 7000
    
    New Zealand        Australia
    Barry Akers        Rick Willis
    Senescall Akers Limited   Network Four
    M:   +64 (0)21 571 234       +61 (0)411 839 344
    E:   [email protected]     [email protected]
    
     *Operating EBITDA is a non-GAAP measure and represents earnings before
    interest, tax, depreciation and amortisation, before non-recurring items and
    intercompany charges
      *Please refer to the comments in relation to forward looking information
    which appear on the last page of this release
    
    All values are expressed in New Zealand currency unless otherwise stated.
    
    Forward Looking Information
    Certain statements in this release constitute forward looking statements and
    comments about future events, including the Company's expectations about the
    performance of its businesses as at the date of this release. By their
    nature, forwardlooking statements involve known and unknown risks,
    uncertainties, assumptions and other important factors, many of which are
    beyond the control of the Company and which may cause actual results,
    performance or achievements to differ materially from those expressed or
    implied by such statements. Forward looking statements are provided as a
    general guide only, and should not be relied on as an indication or guarantee
    of future performance. No assurances can be given that any forward looking
    statements referred to in this release will be realised. Any forward looking
    information speaks only as of the date of this release. Past performance is
    not indicative of future performance and no guarantee of future returns is
    implied or given. Nothing contained in this release is a promise,
    representation, warranty or guarantee as to the past, present or the future
    performance of the Company. The Company makes no representation, and gives no
    assurance or guarantee that the occurrence of the events expressed or implied
    in any forward looking statements in this release will occur or that any
    assumption that underpins any forward looking information is reasonable.
    
    Nothing in this release is a solicitation, invitation, advice or
    encouragement to buy, sell or hold shares in the Company.
    End CA:00273579 For:ATM    Type:FORECAST   Time:2015-11-17 12:39:34
    				
 
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