SM1 Result, page-27

NZ holders have been burnt a fair few times as they get exited or disappointed by a result only to see the Aus market go the exact opposite direction. The last few reports from a2m or sm1 have been very quiet until the Aus market opened (with feb HY report from a2m being the exception).

Very interesting result today. There are more and more unknowns as a2m matures... The product sales mix between ANZ IF and China IF, as well as US and UK growth, new market's performance, a2 IF price rises etc - all make it very difficult to forecast a2m's FY19 growth. Also we have out of stock shelves at present - will this trigger an uptick in sm1's production to meet increased demand prior to November's 11/11 sale? And to rebuild the $65M inventory a2m had on hand at EOFY - which seems to be somewhat depleted? Will Jan 2019 Chinese regulations hinder or help a2m's sales?

Considering sm1's other customers don't have the appropriate regulatory approvals, we can assume almost all of the 26% increased output from sm1 can be attributed to a2. Then we have the above mentioned unknowns to factor in. I guess we will have to look to 4M19 report (if Jayne choses to release one this year) to see how sales are tracking.