A2M +12.48%: despite a challenging China market backdrop, A2 Milk delivered a strong 1st half and beat consensus estimates, sending the stock higher today. Revenue grew 3.7% to $NZ812m while profit of $NZ85.3m was up 16%, a 15% beat to expectations. The topline beat was driven by market share gains in China which offset tighter conditions on lower birth rates, supported by a stabilization in the English label side of the business. Losses in the US were also lower than expected, the $NZ8m loss here was a 25% improvement on 1H23. A2 Milk upgraded FY24 guidance from low single-digit revenue growth to low to mid-single-digit growth, though they did push out their $2b revenue target to FY27 or later.
MM is neutral to bullish A2M
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