The a2 Milk Company (ASX:A2M) released a trading update for FY18 and an outlook for FY19

The Group announced that its unaudited Group revenue for the financial year ended 30 June 2018 (FY2018) totalled ~$922 million which represented a growth of 68 per cent on the prior corresponding period and now the Company expects that EBITDA to Sales ratio for FY2018 will be approximately 30 per cent. The Company during its planning process for FY19 (assuming general trading conditions do not change materially) expects that there will be further growth in revenue in FY19 particularly in respect of nutritional products and there will be an increase in overhead costs as compared to FY2018, primarily due to an increased headcount for China and the Corporate office to support the increasing scale of the Company.

Further, the Company expects that marketing expenditure in FY19 (as a percentage of sales) will be higher than FY2018 given continuing investment in Australia, re-phasing of 2H FY2018 activities in China and elevated investment to support the US market expansion. The Company also included the one-off costs in FY19 expected figures which are associated with the transition to a new CEO which was recently advised. The Company expects that EBITDA to Sales ratio for FY2019 will be broadly consistent with the Company’s expectations for FY2018. The stock price slipped by 2.77 per cent and traded at $10.52 (as on 12 July 2018; 04:00 PM AEST).


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s