The A2 Milk Company today posted a record net profit of NZ$10.1 million (AUD$9.34 million) for the six months ended the 31 December 2015.
The dairy producer which specialises in products made from milk that contains the A2 protein only said its success was due to substantial growth in its sales of infant formula across Australia, New Zealand and China. Revenue from infant formula sold in these countries totalled NZ$73.9 million, up 340 per cent on the same period in the previous year.
Total revenue for the A2 Milk Company of the six months totalled NZ$139.1 million, an increase of 86 per cent on the same period last year.
Despite the global oversupply of milk that continues to plague the dairy industry the A2 Milk Company said it increased its fresh milk performance in Australia with sales up 5 per cent.
Due to the successful results, the A2 Milk Company has revised its forecasted earnings for the financial year ending the 30 June 2016 from NZ$335 million to NZ$350 million.
Geoffrey Babidge, Managing Director of the A2 Milk Company said the company’s strategic agenda over the period had been focusing on growing and broadening the Australian New Zealand milk business and developing growth opportunities in selected international markets.
“Following a period of development, a2 Platinum® infant formula has become a significant contributor to growth and earnings in ANZ and China, which we see continuing,” he said.
“In addition, we see positive prospects for growth of a2 Milk™ whole milk powder, which was first launched late last financial year. We are pleased with the growing level of distribution for a2 Milk™ in the state of California and the repositioning of our brand in the UK during the period,” Babidge stated.
The financial results include the period in November 2015 when A2 Milk infant formula, along with the product of its competitor Bellamy’s Organic infant formula, was difficult to find in Australia supermarkets and pharmacies. The shortages were driven by bulk purchases by traders selling directly online to customers in China.
At the time Peter Nathan, CEO for the Australian and New Zealand divisions of the A2 Milk Company, told Australian Food News that A2 milk production was being significantly increased.
