New Zealand dairy producer A2 Milk Company has more than doubled its net profit, after tax to a record $NZ195.7 million (A$178.5 million) for fiscal 2018.
Strong sales of its infant formula and expansion of the liquid milk business can be credited for the highest net profit in the company’s 11 year history.
The dual-listed company revealed that net profit after tax was up 116 per cent on the previous year and its revenue jumped 68 per cent to $NZ922.7 million.
Chief executive officer Jayne Hrdlicka, said fiscal 2018 had been a “transformative year” for the business.
“Our brand and unique approach are working across multiple products and markets and we are seeing real momentum building in China and the US,” Hrdlicka said.
“Significant progress has been achieved in Australia, China and the USA and important emerging market opportunities are starting to materialise,” she added.
Distribution of a2’s infant formula grew during fiscal 2018, with the formula now available in about 10,000 mother and baby stores in China and 6,000 US stores.
On its outlook for fiscal 2019, a2 said it was forecasting further revenue growth from Australia and New Zealand. It also forecast higher revenue from sales of liquid milk in the United States.
Marketing expenditure as a percentage of sales is expected to be higher, because of continued investment in the Australian market and the company’s expansion in the US market.