ACOPF - The a2 Milk Company: Short-Term Pain Long-Term Gain
- The appointment of new CEO David Bortolussi is in the spotlight, as his experience in China will be critical in helping The a2 Milk Company navigate geopolitical tensions between Australia and China.
- 1H FY 2021 revenue guidance is below expectations, due to the weakness in the daigou sales channel.
- The company has a "One Brand, Two Labels" strategy for its infant milk products, and there is significant growth potential for its super-premium Chinese label products in the medium term.
- The a2 Milk Company is trading at consensus forward FY 2021 (YE June) and FY 2020 P/E multiples of 28.6 times and 23.1 times, respectively.
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The a2 Milk Company: Short-Term Pain, Long-Term Gain