Milk firm to join ASX in dual listing

Geoffrey Babidge.

Vision needed to prepare for ageing population and technology.

The a2 Milk Company says it is planning to list in Australia, where most of its earnings come from, in the first quarter of 2015, while maintaining its listing on the NZX.

A2's cash flow comes from its success in Australia, where it now claims 9 per cent of the fresh milk sold through grocery stores.

"Seeking an ASX listing is a logical strategic move," said a2 Milk managing director Geoffrey Babidge.

Listing on the ASX would enable more Australian investors to participate in the company's growth and increase the attractiveness and liquidity of its shares, he said, adding that a2 would not seek to raise any new capital in conjunction with the proposed ASX listing.

Earlier this year, a2 Milk Co reported a sharp drop in its net profit to $10,000 in the 12 months ended June 30, from $4.1 million a year earlier. Sales rose 17 per cent to $111 million and would have been about $14 million higher if not for the New Zealand dollar's strength against the Australian currency.

Babidge said the strength of the Australian business continued to underpin the implementation of the company's strategic growth initiatives in Britain, China and the United States.

"a2 Milk is one of the fastest-growing dairy brands in Australia with year-on-year brand growth of 38 per cent for the four months ending October 2014."