Peak Season for A2 IF in Coming Months, page-2

Hi @frankycc

Some other facts:

Fonterra:

- Recently started producing A2 only fresh milk for NZ market.

Synlait:

- Synlait has CDFA approval for A2 IF.

- Synlait have an exclusive agreement with a2MC to manufacture A2 IF to ANZ and China.

- a2MC now holds a 17.4% share in Synlait, which is not only a great blocking move to protect its interests, but a healthy investment going forward.

- A two-year extension between a2MC and Synlait which extends their agreement to 31 July 2023.  This also involved an increase in committed production from Synlait among other things.

- Synlait have confirmed that the new Pokeno site will have 45k MT capacity with further expansion possible, this will be ready for the 19/20 season.  To be fair not all production will be going to a2MC and it will not be at maximum production from day one but both Synlait and a2MC are working hard to increase supply of A2 for production.  Considering the overwhelming demand for the product this should translate into almost instantaneous revenue.

USA:

- Population around 325 million, over 10 times the Australia/NZ market.

- Still marketing and brand building in this area but recent announcements that both Walmart and Costco would be carrying in certain states is very positive.  It is also stocked at a variety of other stores around the country.

- Strong possibility of a canning operation facility in the future to produce a2 IF in the USA for this area.

Expansion of product range:

- a2MC have mentioned that they are keen to increase their product range into other dairy goods that use milk.  I miss you A2 ice cream, please come back!

Balance sheet:

- Net operating cashflow was $231.1 million for last financial year.

- Cashon hand at the end of the financial year was$340.5 million.

- The amount of capital that a2MC has combined with the fact that it has no debt allows the company to set up massive growth as it expands into new areas in the future.

- Most analysts are expecting consistent long term growth over the next ten years based on global growth potential and demand as a2MC expands its product knowledge and branding.