The A2 Milk Company has reported double-digit sales growth for the fiscal first half, driven by strong performance in the China and US markets.
Revenue for the six months ended December 31 rose 18.8 per cent to NZ$993.5 million ($845 million), with growth recorded across all segments and product categories.
The China & other Asia segment saw sales increase 20.3 per cent, led by English label Infant Milk Formula (IMF) and other nutritionals growth. The US segment was up 29.1 per cent thanks to core and Grassfed liquid milk growth.
ANZ recorded a more modest 8.8 per cent uplift, driven by Australian liquid milk growth, with Daigou channel sales stabilised.
By category, total IMF sales grew 13.6 per cent, underpinned by strong brand health and effective sales execution. English label revenue grew 20.9 per cent, driven by strong performance within the CBEC and O2O channels.
China label sales were up 6.5 per cent, and liquid milk sales grew 18.5 per cent. Other nutritionals sales surged 42.9 per cent, with growing contributions from kids and seniors fortified milk powder products.
EBITDA increased 18.4 per cent to NZ$155.0 million, while EBITDA margin remained flat at 15.6 per cent. NPAT from continuing operations increased by 9.4 per cent to NZ$112.1 million.
In August, the company announced the acquisition of a fully integrated nutritional manufacturing facility in Pokeno. It also announced the divestment of MVM to optimise its asset footprint and financial performance. Both transactions were completed during the half.
In addition, the company entered into a long-term agreement with Fonterra for the supply of A1 protein-free milk from the North Island in New Zealand.
A2 Milk has upgraded its outlook for the full year, expecting revenue growth of mid double-digit and EBITDA margin of approximately 15.5-16 per cent.
