Highlights:
- A2 Milk Company shared its FY22 results today (29 August 2022), as per which, its EBITDA has zoomed up 59% to NZ$196.2 million.
- In the given financial year, earnings per share is up 51.8% to 16.5 cents in FY22 against 10.9 cents in FY21.
- Also, A2M has announced NZ$150 million share buyback to manage its capital.
New Zealand-based dairy firm A2 Milk Company Ltd (ASX:A2M) shared its financial and operational results of FY22 today. The company believes that it has made significant progress in implementing its refreshed growth strategy and improving performance during FY22.
Based on the company’s financial performance in FY22, A2M has also announced a share buyback program today.
Backed by this update, A2M’s share price touched AU$5.310 per share after gaining 8.146% at 11:30 AM AEST on the ASX today (29 August).
Details of A2M’s financial performance in FY22:
According to the company’s release, A2M’s FY22 results are aligned with its expectations as stated on 21 February 2022. The company successfully managed to deliver double-digit revenue and showed significant growth in earnings despite challenging market conditions.
A2M’s earnings outlook in FY23 is positive as of now, with an expectation of continued revenue and earnings growth.
Key financial takeaways:
- A2 Milk reported revenue growth of 19.8% to NZ$1,446.2 million in FY22.
- The company's Earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 59.0% compared to FY21 to NZ$196.2 million in FY22. EBITDA to sales margin increased to 13.6% compared to 10.2% in FY21.
- A2M's net profit after tax (NPAT), including amounts attributable to non-controlling interests up 42.3% to NZ$114.7 million with NZ$122.6 million attributable to owners of the Company.
- Earnings per share up 51.8% to 16.5 Australian cents in FY22 compared to 10.9 Australian cents in FY21.
- A strong balance sheet with closing net cash of NZ$816.5 million.
A2M’s on-market share buyback plan:
As a result of a strong balance sheet in FY22, A2M is likely to execute an on-market share buyback of up to NZ$150 million. The company believes that an on-market share buyback is the most appropriate form of capital management right now.
The company is expecting to commence its share buyback program from September 2022, and it might continue up to the next 12 months.