ACOPF - The a2 Milk Company: Strong Growth And Profitability Power An Investment Opportunity
- The a2 Milk Company grew revenue 49% on average over the last four years driven by market share gains in the Chinese infant nutrition market with its A2-protein dairy products.
- Double-digit growth looks set to continue on the back of an established premium brand and structural drivers as China’s middle class expands and consumers focus on infant health.
- The company’s growth is complemented by impressive profitability, ROIC above 40%, and a pristine balance sheet full of cash.
- There are risks and temporary COVID-19-related headwinds, but share price weakness has created an opportunity to buy the company well below its intrinsic value.
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The a2 Milk Company: Strong Growth And Profitability Power An Investment Opportunity