A2 Milk Company said recent increases in dairy pricing will have an impact on gross margin percentages in the 2020 financial year but it doesn't anticipate any significant impact this year.
Dairy product prices rose for the ninth straight time in the overnight Global Dairy Trade auction. The GDT price index added 0.8 per cent from the previous auction two weeks ago and average prices are now up 28 per cent since the auction on November 20.
"We do not anticipate any significant impact to gross margin percentage during FY19 as a result of recent increases in dairy pricing as reflected in Global Dairy Trade Indices. However, these increases are likely to have some impact in FY20," A2 said in a presentation for investors in Sydney published on the stock exchange.
Read more: Dairy product prices inch up for ninth time in a row
Its financial year runs to June 30. Gross margin in the first half of the current financial year was 55.6 per cent.