The a2 Milk Company Ltd [NZX:ATM] has experienced a stock value increase of 16.64% today. This happened when bullish trading spurred the market on.

The company exclusively owns and licences intellectual property for the production of a2 dairy products, which has proven wildly popular with Chinese consumers.

a2 has a strong presence on both the Australian and New Zealand stock exchanges. At the time of writing, the company has a market capitalisation of $10.979 billion and the share price sits at $14.93.

Why has the a2 Milk share price increased today?

Favourable reports of strong growth have buoyed market sentiment.

Here are the key highlights:

  • CEO Jayne Hrdlicka has announced that she expects revenue of NZ$780 million to NZ$800 million for the first half of financial year 2020.
  • The projected sales growth is 27% to 30%.
  • The company will reap the upside of fresh investments in China and the United States.

This enthusiastic news has given rise to a bullish response. This has led to a rapid buy-in for the company’s shares.

Where could a2 Milk go from here?

a2 Milk is in a strong position to resume its upward trajectory.

However, it’s important to note that some risk factors still remain in regards to the Chinese-American trade war.


John Ling,