FY21 Result: The stock was hit today ending down 11.81%, we suggested this AM that it would likely fall by ~10% so we were (unfortunately) close. Recapping the result & our view here… Clearly a hugely challenging year for A2M and today’s results reflect that with profit down ~79%. They have reported inline revenue however EBITDA of $123m was ~12% below expectations while NPAT of $80.6m was also a miss on the $95m expected. EBITDA margin was inline with prior guidance & they were operating cashflow positive. They have net cash if $875.2m and issued no earnings guidance. There was the potential for capital management, however they have elected to retain cash for growth. I would suspect this may have something to do with Nestle which has shown interest in A2M. A weak result, not a disaster but weaker than expected – corporate appeal remains…
We see A2M as a takeover target
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