Reaidng the Annual Report, the Chairman refers to lower demand for infant milk formula from mainland communist China and ascribes this to lower 'daigou' sales plus increased Chinese preference for local brands, but this further comment is of interest:
While not entirely being able to offset the reduced demand from China, servicing customers in markets such as Indonesia over a great many years has helped manage the changed demand profile. The change in market does not alter our long- term strategy of providing high-quality infant and toddler dairy nutritionals to customers in Australia and around the world. Whilst infant and toddler nutritional products remain a high-value and core competency of our business, we will ensure that we “right size” our business to respond to changes in the market and position the business well for future opportunities.
BGA Price at posting:
$5.51 Sentiment: Hold Disclosure: Held
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