Media Updates, page-3379

From NZ Herald

Alternative milk and infant formula company a2 Milk said it expected to see strong revenue growth, supported by its investment in China and the United States, in the current financial year.

"Overall, for FY20 we anticipate continued strong revenue growth across our key regions supported by brand and marketing investment in China and the US and the development of both capability and infrastructure to support in-market execution," chief executive Jayne Hrdlicka said in notes prepared for the annual meeting today.

She said the company's earnings before interest, tax, depreciation and amortisation margin percentage was now anticipated to be stronger than previously announced, and in the range of 29-30 per cent.

The margin would benefit from improved price yields and a reduction in the cost of goods sold.

For the first half of the financial year, a2 Milk anticipates revenue in the range of $780m to $800m.

China label infant nutrition sales forecast to be about $135m, representing a
growth rate of about 84 per cent.

China cross border e-commerce formula sales are forecast to reach $155m, representing a growth rate of about 54 per cent.

Australia-New Zealand English label infant nutrition sales forecast to be about $350m, representing a growth rate of about 9 per cent.