Ann: FORECAST: ATM: The a2 Milk Company updates FY16 forecast

• Release Date: 18/12/15 08:32
• Summary: FORECAST: ATM: The a2 Milk Company updates FY16 forecast
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					ATM
18/12/2015 08:32
FORECAST
PRICE SENSITIVE
REL: 0832 HRS The a2 Milk Company Limited

FORECAST: ATM: The a2 Milk Company updates FY16 forecast

18 December 2015
NZX/ASX Market Release
The a2 Milk Company updates FY16 forecast

The a2 Milk Company Limited (the "Company") advised at the time of its Annual
Meeting on 17 November 2015 that, given the favourable trading performance
during the first four months for its a2 Platinum(R) infant formula products,
Group revenue was forecast to grow to $285 million and Group operating EBITDA
 to $22 million in the 2016 financial year.

The Company experienced a significant uplift in sales of infant formula in
the month of November, exceeding the sales projected at the time of the
previous forecast.  This is expected to continue in the month of December.
We now expect sales of a2 Platinum(R) to be approximately $68 million for the
six months to 31 December 2015.

Based on the current trading trends, the Company has determined it
appropriate to further revise its full year outlook upwards.  The Company is
now forecasting Group revenue in the range of $300 million to $315 million,
and Group operating EBITDA in the range of $33 million to $37 million for the
2016 financial year .

The changing and dynamic nature of the infant formula markets in both
Australia and China continues to make forecasting challenging. The Company
will continue to monitor its performance and provide further commentary with
the release of the first half trading results in February.

The Company's Managing Director & CEO Mr Geoffrey Babidge said, "the infant
formula market in Australia is rapidly evolving and experiencing significant
growth. The Company has recently increased the supply of a2 Platinum(R)
infant formula to our customers however we continue to experience a level of
out of stocks on shelf.  The strong trading performance advised today
provides further evidence of the increasing appeal of the a2 Platinum(R)
brand in Australia and China and the growth potential in additional markets
in the future".

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, forward looking 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:00275355 For:ATM    Type:FORECAST   Time:2015-12-18 08:32:58