a2 Milk US formula approval is a win, but China is crucial

. But now, it has been given the best shot at entering the second-largest formula market in the world where it supplies fresh milk products.John Marmaras

“It’s done reasonably well despite the challenges and headwinds, particularly in China. They are growing again, and rolling out into more stores there,” he said. “They are coming off that low base in terms of margins. I think they can get back to the 20 per cent EBITDA /margins from where they are now. This is a far more sustainable business today,” he said.

Barrenjoey head of consumer research Tom Kierath equally liked the stock saying the US news is incrementally positive, but not a “game changer”, and China remains its opportunity.With the US formula market valued at about $US3 billion, Barrenjoey estimates that for every 1 per cent of market share a2 Milk wins it equates to about $NZ50 million in revenue.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Howard Marks on why now is the time to look at ChinaChairman and co-founder of Los Angeles-based investment firm Oaktree Capital likes China because it is ‘uninvestable’, and he is over the moon about our super system.
Source: FinancialReview - 🏆 2. / 90 Read more »

Howard Marks on why now is the time to look at ChinaChairman and co-founder of Los Angeles-based investment firm Oaktree Capital likes China because it is ‘uninvestable’, and he is over the moon about our super system.
Source: FinancialReview - 🏆 2. / 90 Read more »