A2 MILK LAPS UP RECORD RESULT
17 February 2016,
THE A2 MILK Company is lapping up a record result today due to triple-digit growth in its infant formula product.
Its a2 Platinum infant formula saw a rise in revenue of 340 per cent on the prior corresponding period, revenues totalling $73.9 million for the half year to December.
This accounted for 53 per cent of total group turnover.
China and surrounding Asian business delivered positive operating earnings to the company for the first time, and on the Australian front, a2 Platinum was the fastest growing infant formula brand for the fourth quarter in a row.
Overall, the company took in a net profit after tax of $10.1 million, compared to $100,000 the prior corresponding period. Revenue was up 86 per cent on this period, totalling $139.1 million.
The a2 Milk Company managing director Geoffrey Babidge (pictured) says higher investment has paid off in all international markets. Despite pumping out capital for infant formula, the company held $36.4 million cash in hand at the end of the period.
"The company's strategic agenda has been focused on growing and broadening the ANZ milk business and developing growth opportunities in select international markets," says Babidge.
"Following a period of development, a2 Platinum infant formula has become a significant contributor to growth and earnings in ANZ and China, which we see continuing.
"In addition, we see positive prospects for growth of a2 Milk whole milk powder, first launched late last financial year.
"We are pleased with the growing level of distribution for a2 Milk in the state of California and the repositioning of our brand in the UK during the period."
The a2 Milk Company's manufacturing partner in New Zealand, Synlait Milk Limited, is currently in the process of building milk supply due to experiencing a stock shortage in the first hour months of the last period.
While the regulatory environment for formula products in China is complex to navigate, The a2 Milk Company considers itself well placed to respond to any changes.