the lower price of milk solids also partly
explains the difference in outlook for Synlait and A2.
a circa 3% drop in milk price represents a corresponding drop in revenue and expenses for Synlait as the sale price of formula sold to A2 is based on the milk price.
for A2, it’s a win for margin only as they sell formula at their retail price irrespective that they buy the formula for cheaper.
Media Updates, page-12652
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