Tuesday, 16 March 2021 11:30

A2 Milk misery

Written by Milking It

font size decrease font size increase font size

OPINION: In recent years Fonterra has been ridiculed by commentators about the fact that it has been upstaged by a young dairy company, a2 Milk.

Just last August, a2 was living the dream, reporting a bumper after-tax profit of $385.6 million on revenues of $1.73 billion.

Its share price, which at one stage had dropped to 10c, hit the giddy heights of $21.50, valuing the company at $15.9 billion, above NZ's biggest co-op.

But the tables have turned. Thanks to three successive profit downgrades, a2's fortunes have tumbled.

In recent weeks, its share price was $9.50, meaning the company has more than halved in value in little over six months.

It's currently worth about $7 billion.

More like this

Fonterra Expands China Foodservice Business with New Anchor Essence Cream

Fonterra is strengthening its foodservice presence in China with the launch of a new cream for professional bakeries at Bakery China 2026 in Shanghai.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Fonterra Opens 2026/27 Milk Price Forecast At $9.75kgMS

For the third season in a row, Fonterra farmers are in for a farmgate milk price near $10/kgMS.

Fonterra Lifts FY26 Earnings Forecast After Strong Q3 Performance

Fonterra has lifted and narrowed its full year forecast earnings range to 60-70 cents per share after a strong quarter, supported by robust milk production, strong shipment volumes and continued demand across its Ingredients and Foodservice businesses.