A2 Milk saw higher net income and revenue in the fiscal first half, thanks to the growing demand for the company’s milk products in China.
The milk manufacturer’s attributable net profit went up 15.6 per cent year over year to $85.3 million as revenue increased 3.7 per cent to $812.1 million.
Its revenue grew 16.5 per cent in China and other Asian markets and 8.6 per cent in the US. However, its Australian and New Zealand revenue fell 24.1 per cent due to a change in distribution strategy.
In terms of category, the company booked a 1.5 per cent increase in infant milk formula revenue, with China label up 10.4 per cent while English label slid 6.9 per cent.
Liquid milk revenue, meanwhile, rose 1.5 per cent in ANZ and 7.0 per cent in the US. Revenue of other nutritional soared 48.5 per cent while ingredients declined 4.7 per cent.
“We continued to execute against our growth strategy, primarily focused on the China market which now represents approximately 80 per cent of our total branded sales,” said A2 Milk MD and CEO David Bortolussi.
“As we continue to invest and grow, consumers are increasingly seeing the benefits of A2 milk, providing us with a platform to further expand our portfolio, with the launch of more new products expected later this year.”
Bortolussi added that A2 Milk is investing in other products for kids, adults, and seniors and is pursuing growth in other markets.
The company is poised to introduce two new fortified English-label adult milk powder products namely A2 Immune and A2 Move in the second half of the fiscal year.
For the full year, the company forecasts low to low-to-mid single-digit revenue increase.
