Makes sense if you have something strategic to use the money...

Makes sense if you have something strategic to use the money for. Berkshire Hathaway is an investment company so there's always the whole market for them to pick from in terms of how to use their cash. A2 is a different proposition entirely as they've just been growing their cash hoard over years (by definition they're not using it in the business). They might come out and use the money as per Synlait investment which is fine. I don't know but I trust they have a plan because there's little value just keeping it if they don't. The plan could be as simple as picking up distressed assets when the market turns down OR turn to plan B if there's a China shock.

And cash generating companies can have it both ways (invest to grow and also pay dividends). CSL is the best example I can think of.

Personally I think A2 have something in mind for the cash. Possibly an investment in processing in another region. But timing will be critical, can't afford to overpay.