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Matt Montgomerie: Forsyth Barr Senior Analyst on A2's profit increase, purchase of the Pokeno plant
Published 8 months, 2 weeks ago
Description
Another dairy sector shake-up.
Infant formula and dairy company a2 Milk is buying the Yashili plant in Pokeno and selling its majority stake in the Mataura Valley plant in Gore to Open Country Dairy.
A2 Milk's announcement comes as it reports a 21% rise in profit, off the back of a 9.3% rise in revenue.
Forsyth Barr Senior Analyst Matt Montgomerie told Ryan Bridge a2 has stood out over the last couple of years, consistently exceeding expectations despite operating in a relatively tough formula market in China.
He says the decision to acquire the plant in Pokeno is quite a big step in continuing that growth pathway.
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