A2 Milk‘s net profit grew on the back of higher sales in the last fiscal year, thanks to continued growth in China.
The company posted net profit of $152.4 million (NZ$167.6 million) in the year ended June 30, up 7.7 per cent. Revenue grew 5.2 per cent to $1.68 billion (A$1.527 billion).
China and other Asia segment revenue increased 14.1 per cent, but ANZ revenue plunged 14.6 per cent due to a change in n distribution strategy. US revenue increased 8.2 per cent.
Infant milk formula (IMF) sales grew 4.6 per cent, while liquid milk sales rose 4.8 per cent. Other nutritional sales surged 36.7 per cent, and ingredients slid 11 per cent.
“The A2 brand continued to increase market share in the China IMF market and is now a top-five brand. We grew IMF sales despite the China IMF market being down double-digits,” said David Bortolussi, A2 Milk MD and CEO.
“After several years of Covid-19 related disruption and market decline, we are pleased that our English label IMF sales stabilised in the first half and grew 6.9 per cent in the second half.”
For this fiscal year, A2 Milk forecasts mid-single-digit revenue growth due to constrained IMF supply, which is expected to be resolved in the first half.
The company noted challenging conditions in China and said it anticipates further market value decline for the fiscal year.
