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 0.6588 0.0004 0.06%
AUD 0.9014 -0.0009 -0.10%
EUR 0.5993 -0.0041 -0.68%
GBP 0.4212 -0.0006 -0.14%
HKD 5.1077 -0.0023 -0.05%
JPY 81.6510 0.0290 0.04%

Commods

Commodity Price Change Time
Gold Index 1094.9 6.310 2015-07-31T00:
Oil Brent 52.2 -1.100 2015-07-31T00:
Oil Nymex 47.1 -1.410 2015-07-31T00:
Silver Index 14.8 0.060 2015-07-31T00:

Indices

Symbol Open High Last %
NZX 50 5891.9 5937.6 5891.9 0.49%
NASDAQ 5148.2 5155.0 5128.8 -0.01%
DAX 11271.3 11309.0 11257.1 0.46%
DJI 17755.9 17783.6 17746.0 -0.32%
FTSE 6668.9 6705.4 6668.9 0.41%
HKSE 24650.9 24661.2 24498.0 0.56%
NI225 20506.5 20585.2 20522.8 0.30%