Pre covid, A2 had about 30% market share in Oz Supermarkets. Today, 23% seems about right especially as 3rd spot is 13.4% which i suspect would be Bellamys.
The drop in Fy22 Oz IF sales came about predominately from reduced diagou sales as AZ global (corporate diagou) ceased buying A2 in March 2022, uni students staying in China and excessive transportation costs during the FY22 year did not leave any margin left for profitable sales from Oz.
Our diagou market share at 30 June 22 was about 17% and seems to have stabilised based on recent comments at AGM. I know mngt have previously stated that they want to get back to 25% which was pre covid levels.
My recent investigations at 6 diagou shops in Hurstville NSW has given me a positive attitude to this goal. They told me that they have all been busy again in the last 4 months and all their Chinese clients ask for either A2 or Aptamil. They also said that they pay $5 a tin for a courier service to visit their shop every day and deliver directly to Chinese household. One shop told me they now do about 70 boxes a day ( a box is 3 tins) and pre- covid they reached about 100 boxes a day. It seems to me that there has been a definite improvement in this channel but it may not show up in the financials until the August 2023 results.
A2M Price at posting:
$6.09 Sentiment: Buy Disclosure: Held
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