What’s Up with A2 Milk Share Price Rise?

A2 Milk share price rise

What Happened to A2 Milk Shares?

Shares of A2 Milk Company Limited NZ [ASX:A2M] are up 5.03% today, and are trading over 10% higher since last Monday. At time of writing, shares are trading at $7.835.

Why the Share Price Rise?

During their annual presentation last Monday, the company announced a 138% net profit increase for the first four months of fiscal year 2018. The total revenue for the four months to the end of October was NZ$262.2 million (AU$ 236.5 million). That’s a 68.9% rise from last year.

A2 Milk makes infant formula and provides an alternative to regular and dairy free milk. They specialise in milk with A2 protein.

While most cows produce milk that contain both A1 and A2 proteins, the company has patented the process of identifying cows that naturally produce milk containing only the A2 protein.

The theory is that A2 protein may make it easier for some people to digest milk.

What Now for A2 Milk?

The company expects that interest in A2 milk will continue to increase. They are looking to expand their distribution into more areas of the United States.

A2 Milk has recently been given the OK to sell their instant formula in China and is planning on increasing its marketing efforts in both the US and China.

A2 Milk is one of the big winners, with over 290% gains in the last year. Last January, shares were trading at around $2. If you want to find out the four best stocks in the ASX this year, click here.

Selva Freigedo,

For Money Morning

Selva Freigedo

Selva Freigedo

Selva Freigedo is an analyst at Money Morning. She has a background in financial economics, but what makes Selva´s experiences different to many are the places she has lived and worked.

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