The a2 Milk Company Limited Analysis

Overview

The a2 Milk Company Limited was founded in February 2000 on a simple, yet profound, discovery that different cows produce different milk proteins that behave differently in people's bodies.

Milk that is naturally rich in the A2 beta-casein protein (and free from all A1 beta-casein protein) has been found by many to be easier to digest.

The a2 Milk Company single-mindedly pioneers scientific understanding, operational know-how and commercialisation of premium a2 Milk brand products around the world. Today, we have a range of products available in Australia, New Zealand, UK, USA and China.

The a2 Milk Company Limited listed on the NZAX market in April 2004 and completed capital raising and transferred the listing to the NZX Main board in 2012. The company was dual listed on the ASX in March 2015.

For more information visit: www.aboutthea2milkcompany.com

Performance

The following information was extracted from The a2 Milk Company Limited's Full Year report, released 19 August 2024:

• Revenue growth of 5.2% to $1,675.5 million
• Regional revenue: China & Other Asia segment up 14.1%, ANZ segment down 14.6% due to a change in English label IMF distribution

strategy, USA segment up 8.2% and MVM external sales down 11.0%

• Category revenue: Total IMF up 4.6% with China label up 9.5% and English label down 0.3%6, liquid milk in ANZ and USA up 3.3% and

7.4% respectively, other nutritionals7 up 36.7% • EBITDA up 6.9% to $234.3 million with an EBITDA margin of 14.0% (up 0.2ppts)

• Net profit after tax (NPAT) attributable to owners of the Company up 7.7% to $167.6 million
• Basic earnings per share (EPS) up 9.2% to 23.2 cents
• Closing net cash of $968.9 million up $211.7 million on June 2023 with operational cash conversion of 125.7%10
• FY25 guidance for revenue growth of mid-single digit percent and EBITDA margin (% of revenue) to be broadly similar to FY24 (see

FY25 Outlook in the “FY24 Results Commentary and Outlook” announcement)