A2 Milk extends supply deal with Synlait, lifts outlook
The a2 Milk Company expects its full-year outlook to beat guidance, saying
profit could rise by between 29 and 30 per cent to as much as $NZ800 million ($A752 million).
Speaking at the company’s annual general meeting in Auckland on Tuesday, managing director Jayne Hrdlicka said that strong first-half sales and improved marketing investment in China and the US would help lift margins.
At the company’s full-year results in August, the dairy company had expected the figure to be in line with the 28.2 per cent recorded in the second half of FY19.
“While we have only just begun our journey in both Greater China and the US, the results of strategic focus and investment are starting to come through,” Hrdlicka said.
The company expects first-half sales to grow by between 21 per cent and 30 per cent, as its infant nutrition sales in China and the US soar.
The a2 Milk Company also announced that it is extending its manufacturing and supply agreement with Synlait Milk to July 2025. The new deal will see an increase in the volume of nutritional products that Synlait has the rights to supply, and increased production from Synlait.