Just some basic logic regarding the growth prospects of A2m: If...

Just some basic logic regarding the growth prospects of A2m:

If there is shortage of supply, that means that (max supply capability = sales).

Synlait has taken over NZDC as known within their FY17 annual report that will double infant formula production capacity from 40,000 MT to 80,000 MT, hence the supply of A2 Platinum should also increase correspondingly.

By this logic, the fact that there is major supply shortage - the doubling of Synlait's IF production capacity should therefore also result in the doubling of A2 Platinum sales for FY18. Considering that margins are decreasing substantially YOY, this should translate to a greater than 200% earnings growth from A2 Platinum sales alone.

The fact that there is even a daigou "industry" who take significant margins and strip A2 IF from shelves is testament to how A2 Platinum products are far from becoming saturated within the market.

If anything, the abolition of the middleman through fixing our supply chain will only serve to popularise our products outside the new Chinese middle-class who are able to afford A2 products, into the general mainstream that will only serve to further strengthen demand and hence, sales - being the superior product.

This is not even taking into account yet our two other significant markets that should serve to further strengthen our earnings base, being culturally high dairy intake nations, the US (once the populace are aware of the benefits of pure A2) and UK (that have just became profitable), not to forget our home ground being ANZ with A2 gradually biting down on market share.