Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

A2 scotches talk of infant formula woes; shares gain

Wednesday 21 December 2016 02:50 PM

A2 scotches talk of infant formula woes; shares gain

By Paul McBeth

Dec. 21 (BusinessDesk) - A2 Milk Co shares gained after the milk marketer played down fears about the infant formula market stemming from ASX-listed rival Bellamy's Australia's extended trading halt.

The stock gained 5.4 percent to $2.15, having been under pressure since Dec. 12 when Bellamy's sought a trading halt, stoking speculation about the formula market.

Auckland-based, Sydney-headquarter A2's infant formula business is still underpinning significant sales growth, it said in a statement. The stock fell as much as 15 percent after Bellamy's entered the trading halt, extended today pending negotiations with key suppliers and manufacturers that could affect earnings. Bellamy's was to have lifted the trading halt today but now expects the suspension to stay in place until Jan. 13.

In a statement, A2 said it "notes the higher level of recent comment and interest from shareholders relating to the infant formula market" and that "the business continue to trade very strongly, reflecting, in particular, significant year-on-year growth in its infant formula business".

At its November annual meeting, A2 told shareholders revenue was up 96 percent to $155.2 million in the first four months of the financial year, generating earnings before interest, tax, depreciation and amortisation of $35.5 million.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO:

"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>

ALSO: