Dairy company A2 Milk has reported a “strong” full-year result with double-digit sales and earnings growth despite challenging market conditions in China.
For the year to June 30, sales grew 10.21 per cent to $1.6 billion with tax-paid profit up 26.2 per cent to $144.8 million and EBITDA of $219.3 million, up 11.8 per cent.
Australia and New Zealand sales were down 30.2 per cent due to a change in distribution strategy while China & other Asia region sales grew 37.9 per cent. US sales were up 27.1 per cent and Mataura Valley Milk brand sales were up 9.2 per cent.
The company also grew sales and improve online platform rankings in China and English label IMF in Double 11 and 618 key sales events.
The business received approval from China’s SAMR for pre-registration of China-label IMF products and launched new products in all categories.
MD and CEO David Bortolussi described the results as a “remarkable achievement” despite a 14 per cent decline in the core China market.
“The China market has become increasingly challenging as a result of lower birth rates and increased competitive intensity. Notwithstanding, we are well-positioned to continue to invest and grow share in FY24 to emerge in a stronger position when the market recovers.”
