The A2 Milk Company Ltd (ASX: A2M) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) in the last two days of the week.
A2 Milk shares have climbed 0.28% since market close on 26 October and are currently trading at $5.30. For perspective, the ASX 200 Index has fallen 0.42% in the same time frame.
Let's take a look at what has been happening with A2 Milk.
What's happening at A2 Milk?
A2 Milk advised the market it is on track to achieve its ambition to grow sales to $2 billion and improve EBITDA margins over time.
In a company presentation yesterday, A2 Milk said it has made solid progress in the 2022 financial year towards its medium-term ambition with "most growth drivers and associated initiatives" on track to plan.
This includes the China infant milk formula label, which A2 Milk said is "ahead". Other nutritional products and emerging markets are a "work in progress".
Looking ahead to FY23, A2 Milk is optimistic about revenue growth. The company said:
Outlook for FY23 is for high single digit revenue growth broadly consistent with achieving medium term ambition over time.
A2 Milk achieved a 59% boost in EBITDA in the 2022 financial year, while revenue lifted 19.8% to more than $1.4 billion.
Meanwhile, A2 Milk advised earlier this week that Shareef Khan has resigned as chief operations officer. He will finish up at the end of December to spend more time with family and explore other pursuits. The company will introduce a new chief supply chain officer role within the executive leadership team. The new appointment will be announced in the coming weeks.
Earlier this month, analysts at Bell Potter maintained a buy rating with a $6.60 price target on the company's shares. This implies a nearly 25% upside on the current share price.
A2 Milk share price snapshot
A2 Milk shares have fallen 14% in the past year and nearly 3% year to date.
For perspective, the ASX 200 has lost nearly 9% in the last year.
A2 Milk has a market capitalisation of about $3.9 billion based on the current share price.
