a2 Milk (ASX:A2M) lifts earnings guidance

Company News

by Anna Napoli

a2 Milk (ASX:A2M) has lifted its earnings margin forecast to 29 to 30 per cent for 2020 financial year ahead of its previous guidance of 28.2 per cent.

The increase comes on the back of Improved price yield and a reduction in the cost of goods sold.

For the first half of 2020 the company expects revenue in the range of $780 million to $800 million.

Meantime,  China label infant nutrition sales are forecast to be around $135 million representing a growth rate of around 84 per cent.

The company has also announced it has extended its manufacturing and supply arrangement with Synlait Milk, with some revised terms.

Shares in a2 Milk (ASX:A2M) are trading 16.47 per cent higher at $14.