At this stage, a2 Milk Limited [ASX:A2M] is known for its consistent share increases.
Its 3.50% growth surge is nothing out of the ordinary, as results have been nothing but positive all year.
In its half year report, a2 pointed out the factors which contributed to its shares increasing on such a consistent basis.
The company has been focusing on distribution growth and expansion in emerging markets.
Revenue from China has also helped growth take place.
Exceptional performance across Asian regions
a2 has had success in China with its multi-channel infant formula strategy.
While sales and distribution have been strong in the Asian regions, brand awareness has also been growing at a consistent rate.
While being driven by new investments in sales and marketing, a new brand campaign, which features live streaming events and TV media segments, has helped the brand stay relevant in Asia.
a2 Platinum infant formula was also released in Hong Kong and was distributed through 350 high end pharmacy outlets.
With its marketing focus and new release, China sales have helped a2 turn over positive results.
a2 has improved its figures across the span of almost a year.
TheSydney Morning Heraldreported in its article:
‘a2 Milk said revenue for the nine months ended March 31 was $NZ660 million, up about 70 percent from last year on the back of strong sales growth in its nutritional products and liquid milk.’
The strong sales figures reflect China’s increased need in Australasian products, like the various milk formulas which a2 can provide.
a2 Milk is aware of this opportunity and has undertaken the necessary procedures required to secure market opportunities.
The future’s looking positive for a2 milk, as it’s potentially more than likely to capitalise from further sales.
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