Industry Revenues:

• Dairy Products: 70%
• Baby Food: 25%
• Other Products: 5%

TOP 3 Markets:

• China: 45%
• Australia: 35%
• New Zealand: 10%

The a2 Milk Company Limited generates the majority of its revenues from the dairy products industry, with a significant portion also coming from the sale of baby food. The Chinese market is the largest single market for the company, followed by Australia and New Zealand. These markets are crucial for the revenue growth and strategic direction of the company.

Production Sites:

• New Zealand
• Australia
• USA

The a2 Milk Company Limited mainly produces its products in New Zealand and Australia. These sites are known for their high-quality dairy products and provide an ideal environment for the production of a2 milk. Additionally, the company has also established production capacities in the USA to better serve the North American market.

This strategic distribution of production sites enables The a2 Milk Company to efficiently respond to demand in different markets and optimize logistics costs.

Revenue Growth: Estimated 8-10% (2025)

Market Expansion: Asia-Pacific region, especially China

Product Innovation: Expansion of the product portfolio in the area of baby food and functional foods

The a2 Milk Company Limited is pursuing a multi-pronged growth strategy to strengthen its market position and increase revenue. An essential part of this strategy is the expansion into the Asia-Pacific region, with China identified as a key market. The company is investing in marketing and distribution to increase its brand awareness in these regions.

Additionally, a2 Milk places great emphasis on product innovations. The company continuously expands its product portfolio, especially in the areas of baby food and functional foods, to meet changing consumer preferences. These measures are intended not only to increase revenue but also to enhance customer loyalty.

Furthermore, a2 Milk is focusing on optimizing the supply chain and increasing efficiency to reduce costs and improve margins. These strategic initiatives are designed to enable the company to grow profitably in the long term.

Main raw materials: Milk, packaging materials

Import countries: Australia, New Zealand, China

The a2 Milk Company Limited sources its main raw materials, especially milk, primarily from Australia and New Zealand. These two countries are known for their high-quality dairy products and provide the special A2 milk varieties that the company requires.

In addition, the company imports packaging materials necessary for the filling and transportation of its products. A significant market for the export of processed products is China, indicating that some packaging materials may also originate from this country to optimize the supply chain.

The dependence on these countries is strategic as they ensure both the quality of the raw materials and proximity to key markets.

Market share in China: 6% (2024, estimate)
Revenue growth in Australia: 10% (2024)
Gross margin: 50% (2024, estimate)

The a2 Milk Company Limited has a significant competitive advantage through its specialized product line focusing on A2 proteins. These products appeal to a specific group of customers who are sensitive to traditional dairy products. This has helped the company to stand out from other dairy producers.

In China, one of the largest markets for baby food and dairy products, a2 Milk holds a market share of approximately 6%. This demonstrates that the company has successfully established itself in a competitive market. Additionally, a2 Milk has recorded a revenue growth of 10% in Australia, indicating a strong brand presence and customer loyalty.

The gross margin of about 50% underscores the company's ability to sell its products at a premium price, pointing to a strong brand perception and product differentiation. Overall, a2 Milk's competitive advantage is well secured by its specialized product line, strong brand presence, and geographic diversification.

Institutional Investor Share: approximately 50% (estimated for 2025 based on historical trends)

Insider Buys/Sells: No significant transactions in the last year (estimated for 2025)

The institutional investor share in The a2 Milk Company Limited traditionally accounts for about half of the total share ownership. These investors include large investment funds and pension funds seeking long-term investments.

Regarding insider buys and sells, there have been no significant transactions in the last year that would indicate a substantial change in ownership structure or management's confidence in the company's future development. This suggests a stable internal assessment of the company's situation.

Market share of The a2 Milk Company Limited: Estimated around 10% (2025)

Main competitors and their market shares:

1. Nestlé S.A.: around 25%
2. Danone S.A.: around 20%
3. Abbott Laboratories: around 15%
4. Reckitt Benckiser Group plc: around 12%
5. The a2 Milk Company Limited: around 10%
6. Mead Johnson Nutrition Company: around 8%
7. FrieslandCampina: around 5%
8. Arla Foods: around 3%
9. Hain Celestial Group: around 2%
10. Bellamy's Organic: around 1%

Moat of The a2 Milk Company Limited:

The a2 Milk Company has created a certain moat by specializing in A2 proteins in dairy products. This specialization appeals particularly to health-conscious consumers who want to avoid A1 proteins. The focus on a differentiated product portfolio has helped the company stand out from traditional dairy producers.

However, compared to major competitors like Nestlé and Danone, which have a broader product range and stronger global presence, a2 Milk's moat is less pronounced. These companies have more extensive resources to invest in research and development and defend their market shares.

In summary, The a2 Milk Company has a specific advantage in their niche strategy, but the larger competitors possess a stronger moat due to their size and global reach.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Market Share in China: 6.5% (2024)

The a2 Milk Company Limited has shown solid revenue and profit growth in recent years. In 2024, revenue increased by 8.5%, while profit grew by 10.2%. These growth rates indicate strong operational performance.

A key driver for this growth is the company's expansion into the Chinese market, where it has achieved a market share of 6.5%. The demand for premium dairy products, especially those with health benefits, remains high in China, benefiting a2 Milk.

Additionally, the company has invested in product innovations and optimized its supply chains to increase efficiency and reduce costs. These strategic measures could further support future growth.

Given these factors, the a2 Milk Company Limited could be an attractive investment, especially for investors interested in a company with strong growth potential and a solid market position.

Dividend: No payout (as of 2025)

In the past, The a2 Milk Company Limited has not distributed dividends to its shareholders. The company has traditionally focused on reinvesting profits into business growth and expansion rather than paying dividends.

This strategy allows The a2 Milk Company to strengthen its market position and expand into new markets. Therefore, investors should not expect a short-term change in this dividend policy, as the company continues to prioritize growth and investments.