Trading Tues 5th Jan, page-290

Here’s what we know;

A2M advised at the agm that they are a little behind in signing up stores in Northern California;

“Sales behind budget given delay in achieving targeted distribution”

We haven’t seen the TV advertising campaign launched in the US either which A2M suggested was close at the time of FY reporting last August.

My opinion is that they are holding off on advertising for now, it’s better value per advertising dollar spent once all the targeted stores are stocked with product, hence the probable delay in revenues.

This is supported by trended product interest which has dropped off over recent months also, but which may revert once the TV advertising commences.

http://www.google.co.nz/trends/explore#q="a2 milk"&geo=US&date=1/2013 36m&cmpt=q&tz=Etc/GMT-13

I don’t think A2M will hit the forecast $38M in UK & US segment revenues at FY16, they are a bit too far behind now for that, and the HY report in February will make that clear and obvious.

But, the overall revenue and EBITDA guidance we received in December should take that into account as it was provided just before the end of the reporting period and thus should be reasonably accurate one should expect.