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

Forex

Sym Price Change
USD 0.7188 0.0000 0.00%
AUD 0.9481 0.0000 0.00%
EUR 0.6451 0.0000 0.00%
GBP 0.5452 0.0000 0.00%
HKD 5.5895 0.0000 0.00%
JPY 73.1040 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1349.0 16.400 2016-07-29T00:
Oil Brent 43.5 -1.170 2016-07-29T00:
Oil Nymex 41.6 0.430 2016-07-29T00:
Silver Index 20.3 0.155 2016-07-29T00:

Indices

Symbol Open High Last %
NZX 50 7306.4 7357.7 7306.4 0.57%
NASDAQ 5162.1 5175.8 5155.0 0.14%
DAX 10320.8 10355.3 10274.9 0.61%
DJI 18442.5 18466.5 18456.3 -0.13%
FTSE 6721.1 6740.5 6721.1 0.05%
HKSE 22056.0 22152.8 22174.3 -1.28%
NI225 16359.7 16679.2 16476.8 0.56%
ASX 5556.6 5570.4 5556.6 0.10%