The A2 Milk Company produces branded dairy products and infant formula under the 'a2 milk' brand. A significant increase in demand for protein enriched diets from a growing middle class in the developing world (in particular Asia) is a favoured multi-year theme for ATM. Australasia is set to directly benefit from this ‘Dining Boom’, with Australia and New Zealand being agricultural exporting nations in close proximity to Asia. We believe A2 will benefit from this thematic over the long term as it supplies its dairy products to a growing audience. The share price has jumped a further 40% since our last update, with the company raising its annual earnings forecast for the 2nd time in 2 months. The stock is now up 179% for the year and is the NZX’s best performing stock for the year thus far.
On the 18th December A2 Milk’s management advised shareholders that that the company had experienced a significant uplift in sales of its infant f...
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