Latest / Early Edition with Ryan Bridge / Oliver Mander: Shareholders Association CEO on A2 Milk getting approval to sell infant formula to China

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Oliver Mander: Shareholders Association CEO on A2 Milk getting approval to sell infant formula to China · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Back home A too milk. Shareholders have reason to smile
• 0:02
  Speaker 1: this morning. Companies want approval to sell infant formula into
• 0:05
  Speaker 1: China from its Pocino plant, the key reason that it
• 0:07
  Speaker 1: bought the site last year in the first place. Now
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  Speaker 1: moving ahead with a three hundred million dollar special dividend
• 0:13
  Speaker 1: A two. She is really eleven percent on the news.
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  Speaker 1: Oliver Amanda Shareholders Association CEO with me this morning. Oliver,
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  Speaker 1: A good morning, Good morning, Ryan. So just confirming what
• 0:23
  Speaker 1: was expected.
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  Speaker 2: Look, I think that's how I would read this. They
• 0:27
  Speaker 2: purchased the plants for around two hundred and eighty million
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  Speaker 2: dollars last year or in September. They actually didn't make
• 0:34
  Speaker 2: the full payment until then. It was some of the
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  Speaker 2: cash was held back until those regultuary approvals had been
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  Speaker 2: achieved now been completed. I think the even sent at
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  Speaker 2: the time they'd pay. They had an intention to pay
• 0:45
  Speaker 2: a three hundred million dollar dividend on the completion of
• 0:48
  Speaker 2: both the samrcreditation and the completion of the MBM sale
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  Speaker 2: down Southland. And yeah, so this is.
• 1:00
  Speaker 1: No surprises, doesn't guarantee sales? Does that? I mean, it's
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  Speaker 1: a regulatory it's regulatory approval, it's not a it's not
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  Speaker 1: a free ticket.
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  Speaker 2: No, it's not a free ticket. This will they still
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  Speaker 2: have work to do to actually market those products into China,
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  Speaker 2: but it does at the time the business case allow
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  Speaker 2: for an extra one hundred million dollars of increased revenue
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  Speaker 2: that attached to those two products. And the AMMAR is
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  Speaker 2: interesting because it does attach to the plant and specific products.
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  Speaker 2: So right now they've got this their sin Lay manufactured
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  Speaker 2: Chinese label infant formula. This gives them, gives them two
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  Speaker 2: more product lines that it can fell into China, so
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  Speaker 2: they will have every expectation of using that capability to
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  Speaker 2: market those and new products that they tend to produce.
• 1:40
  Speaker 1: Yeah, the share market liked it yesterday. Do you think
• 1:43
  Speaker 1: that they will continue liking stories like this? And how
• 1:46
  Speaker 1: does sin they feel?
• 1:51
  Speaker 2: So to the first, anything that underpins and creates real
• 1:54
  Speaker 2: cash will always be well received by shareholders previous signals basics.
• 2:00
  Speaker 2: But you know, despite all of that and the sentiment
• 2:04
  Speaker 2: surrounding that investors do like cash ultimately, so anything that
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  Speaker 2: that creates the potential for more, more profitability, more cash
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  Speaker 2: flow will be really well regarded by the market in
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  Speaker 2: terms of Simlay that that is an interesting question at
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  Speaker 2: the time, they maintained that they had they ever intention
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  Speaker 2: of keeping on the siny capacity and the capability there.
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  Speaker 2: It's not not surprising because the more access they can
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  Speaker 2: get into Chinese market, the more the more revenues that
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  Speaker 2: they are able to achieve. But yes, this does certainly
• 2:39
  Speaker 2: give a two milk more options when it comes to
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  Speaker 2: getting that product into the Chinese market.
• 2:44
  Speaker 1: Oli a good chat Oliver Man that shareholders Association's CEO.
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  Speaker 2: For more from early edition with Ryan Bridge.
• 2:50
  Speaker 1: Listen live to news talks. It'd be from five am weekdays,
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