New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>The a2 Milk Company (ATM) reported a solid 1H23 result, with EBITDA of NZ$107.8m and NPAT (including the MVM non-controlling interest) of NZ$68.5m</li><li>The key result mix deviations relative to our expectations are (1) lower English Label (EL) revenue but higher China Label (CL) revenue (revenue in aggregate slightly below), (2) slightly higher GMs (47.7% versus 46.6% forecast), and (3) slightly higher costs (total SG&amp;A of NZ$265.5m versus our NZ$261.7m).</li><li>FY23 guidance for “low double digit” revenue growth and EBITDA margins “to be similar” to FY22 is unchanged.</li></ul>

The a2 Milk Company (ATM) reported a solid 1H23 result, with EBITDA of NZ$107.8m and NPAT (including the MVM non-controlling interest) of NZ$68.5mThe key result mix deviations relative to our expectations are (1) lower English Label (EL) revenue but higher China Label (CL) revenue (revenue in aggregate slightly below), (2) slightly higher GMs (47.7% versus 46.6% forecast), and (3) slightly higher costs (total SG&amp;A of NZ$265.5m versus our NZ$261.7m).FY23 guidance for “low double digit” revenue growth and EBITDA margins “to be similar” to FY22 is unchanged.

The A2 Milk Company (ATM): 1H23 Result – Initial Impressions

A2 Milk Co Ltd

The A2 Milk Company (ATM): 1H23 Result – Initial Impressions