Shares & Derivatives
Updates on The a2 Milk Company
By The Good Investors  •  November 11, 2021
Not much has gone right for The a2 Milk Company recently. In its fiscal year 21 (FY21), which ended on 30 June 2021, the infant milk formula and fresh milk specialist suffered a 30.3% decline in revenue to NZ$1.21 billion from the previous financial year. Gross profit dropped even more, falling 47.4% to NZ$509.7 million, because of write-downs from inventory overload at resellers and a big decline in a2 Milk’s high margin English-label infant milk formula products. And things are not likely to improve in the next fiscal year with management providing some bleak remarks on the overall outlook for FY22. As an investor with a vested interest in a2 Milk since July 2020, watching its share price slide 67% has, to put it mildly, not been a pleasant experience. The fact that the S&P 500 index has risen 47% over the same time makes it even more depressing. So what went wrong?
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By The Good Investors
We are Chong Ser Jing and Jeremy Chia, and we started The Good Investors in the aftermath of The Motley Fool Singapore’s closure in late 2019. We both have a passion for stock market investing and believe deeply in enriching society through our investing activities. One way we can do so is through investor-education. The Good Investors is our personal investing blog and will serve as a free platform for both of us to openly share our investing thoughts with you.

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