A2 Corp halves annual loss, expects further improvement

A2 Corporation has halved its losses in its 2008/09 financial year, the company’s preliminary results reveal.

The company, which owns and licenses technology to identify milk with the A2 beta casein protein it claims has health benefits, has announced a post-tax loss of $3.5 million or $2.7 million excluding abnormal costs for the 15 month period to June 30, 2009.

Last year the company reported a $6.3 million loss over the 12 months to March 31, 2008. Since then the A2 Corporation has changed to a mid-year reporting period.

In its report to NZX, A2 Corporation claimed financial improvements came from a two-pronged approach.

The first was the strengthening of its balance sheet with share placements to create a net cash position of $8.9 million, which was $7.1 million at the close of the financial year.

As a result the company expected to require no further capital unless an acquisition or purchase of assets was considered.

Secondly, improved operational performance was delivered from a restructure of the management team and a focus on procedures and accountability that saw previous losses reduced dramatically.

A deliberate strategy of making key markets profitable was also followed.

Its joint venture, Australian Dairy Products Australia (A2DPA) has traded profitably since December, except for April, due to a one-off cost, and finished the year with a $A500,000 ebit, compared with a loss of $A3.4 million last year.

The company signalled it expected the trend to continue with improvements on milk volume and profitability into 2010.

Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6532 0.0010 0.15%
AUD 0.9089 0.0009 0.10%
EUR 0.6173 0.0012 0.19%
GBP 0.4348 0.0011 0.25%
HKD 5.0629 0.0070 0.14%
JPY 80.1740 0.0490 0.06%


Commodity Price Change Time
Gold Index 1056.2 -13.650 2015-11-27T00:
Oil Brent 45.2 -0.320 2015-11-27T00:
Oil Nymex 41.8 -1.230 2015-11-27T00:
Silver Index 14.0 -0.150 2015-11-27T00:


Symbol Open High Last %
NZX 50 6087.9 6103.4 6087.9 0.22%
NASDAQ 5121.9 5134.4 5116.1 0.22%
DAX 11277.9 11354.0 11320.8 -0.24%
DJI 17806.0 17830.4 17813.4 -0.08%
FTSE 6393.1 6393.1 6393.1 -0.28%
HKSE 21974.8 22146.7 22068.3 -0.24%
NI225 19857.4 19868.0 19883.9 -0.38%