Dairy company A2 Milk has delivered double-digit revenue and earnings growth despite challenging market conditions.
For the year to June 30, revenue grew 19.8 per cent to NZ$1.45 billion recording strong growth in China, other Asian markets and the US. Its China label and infant milk formula sales were up 12.2 per cent and 11.6 per cent respectively.
Tax-paid profit rose 42.3 per cent to $114.7 million with $122.6 million attributable to company owners.
The Mataura Valley Milk brand which was acquired for a 75 per cent interest late last July, contributed $104.4 million in revenue.
David Bortolussi, A2 Milk’s MD and CEO, said this was a successful year as the business made progress in refreshing its strategy and improving execution.
“Our significant increase in marketing investment has driven further gains in brand health metrics and record market shares delivering strong growth in our China infant milk formula business.
“We have maintained our brand leadership position in liquid milk in Australia with increased loyalty and household penetration, and our US milk business grew strongly during the year driven by innovation.”
The company’s increased focus on innovation resulted in new products such as A2 Milk Half & Half, Hershey’s A2 Milk, A2 Milk UHT, A2 Milk cream and Lactose Free among others. It has also increased its investment and digital marketing in China to increase its impact.
The company has announced an on-market buyback of shares worth up to $150 million towards the end of next month.
