I think some people are getting a tad over optimistic. Coles an Woolies work off 30-40% margin on products. Goods are free into store - ie a2 pays for shipping into Aus, which is extremely expensive from NZ (one of the most expensive routes in the world). I would say a2 would be lucky to get over $20 a tin. Also Synlait does not have CFDA registration on its second site. So we cant assume that that powder can be sold in fy19. Lastly, it seems to be assumed a2's portion of Synlaits IF production will continue to be 80%. As we had confirmation that Munchkin formula has now hit the shelves in the US, I imagine their initial stock order would have been very high to fill shelves - perhaps this accounts for decent potion of powder hitting out of Synlait in the first half. I remain confident a2 are performing very well, but it seems 'group think' is affecting a few posters here.
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