A2 Corporation Limited (“a2C”) (NZAX:ATM) has today announced an audited Group post-tax loss of $2,193,973 for the twelve (12) months ended 30 June 2010. This compared to a loss of $3,528,057 for the fifteen (15) months ended 30 June 2009.
The audited Group post-tax loss is made up of the following:
A pleasing aspect is the net level of cash of $5, 214, 589 at year end (pre termination payments and approximately $100,000 outstanding for due diligence costs).
Over the past twelve (12) months the Company has continued on a major transitional phase with the aim of building a global A2 milk business. This has been progressed with the intention of aligning all parts of the business. The most significant changes include:
a2C’s Australian joint venture, A2DPA remains focussed on growing a2 Milk™ sales in Australia with F2010 delivering a 49% increase in sales volume. This growth is due to a number of factors including increased consumer awareness, increased product ranging, effective marketing programs and loyalty from a2 Milk™ consumers.
Jalna a2 yoghurt is now available in all Australian states under a license arrangement.
The growth of the business over the past three years has been impressive:
|Sales Volume (million litres)||6.6||10.9||16.2|
|Sales Revenue (AUD million)||10.9||17.7||26.0|
|EBIT (AUD million)||(3.5)||1.0||2.6|
|NPAT (AUD$ million)||(3.7)||1.3||1.7|
a2C has rationalised to one licensee in the New Zealand market. Previously, there were multiple licensees with clashes of territories and no brand unity.
Fresha Valley a2 Milk™ is obtained from a fully isolated a2 herd ensuring that all New Zealand a2 Milk™ contains only the a2 type of beta casein. a2C’s quality assurance testing program ensures that Fresha Valley a2 Milk™ is of the highest quality.
Both a2C and Fresha Valley are committed to driving increased sales, availability and awareness of the a2 Milk™ product within New Zealand.
After Purmil withdrew milk from the market and failed to remit minimum royalties, A2C attempted to resolve the impasse both through negotiation and mediation. a2C is pursuing its’ legal rights under the Korean license as it considers this market a significant opportunity for a2 Milk™ dairy products.
a2C has certified genetic a2 cattle testing agreements in the USA with the highly respected testing entity; the University of California Davis. This agreement allows dairy cattle to be tested for the a2 beta casein gene; with testers and farmers advised of a2C’s ownership of the IP dealing with test results and their use for determining herd formation and milking.
A further update on each of the business’ markets will be included in the Annual Report.
For more information please contact:
David Mair, Independent Executive Director, A2 Corporation, Ph +64 21 708 021
Geoffrey Babidge, Managing Director, A2 Corporation, Ph + 612 8543 3515