FY22 Results - The a2 Milk Company delivers double digit growth and announces share buyback
The a2 Milk Company today announces that the Company has made significant progress in implementing its refreshed growth strategy and improving performance during FY22.
More specifically, the:
1. Inventory management actions taken last calendar year to address excess infant milk formula (IMF) inventory have proven effective with channel inventory at target levels, product freshness amongst the best in the industry and improved market pricing
2. Refreshed growth strategy communicated to the market in October 2021 which focused on capturing the full potential of the China market opportunity is having an impact achieving new highs in brand health metrics and record market shares
3. Full year result for FY22 is in line with the Company’s expectations as outlined on 21 February 2022, delivering double digit revenue and earnings growth despite challenging market conditions driven by the refreshed growth strategy and improved execution
4. Outlook for the business in FY23 is positive with continued revenue and earnings growth expected, and the Company is on track to deliver on its medium-term financial and non-financial ambitions communicated to the market at its Investor Day in October 2021
As a result of the above, and considering its strong balance sheet position, the Company intends to execute an on-market share buyback of up to $150 million. An on-market share buyback is considered to be the most appropriate form of capital management at this time.
The Board and Executive Leadership Team would like to express their appreciation to the Company’s supportive shareholders, talented team, valued farmers, loyal customers/distributors, committed suppliers and strategic partners in China, for their collective support during a challenging period overcoming COVID-19 related disruption and market headwinds.
The following items are attached in relation to the full year results for The a2 Milk Company Limited for the 12 months to 30 June 2022:
NZX Results Announcement
Results Commentary
Annual Report
Results Presentation
