Infant formula maker A2 Milk has reported first half net profit after tax of $NZ39.4 million ($36.8 million), a 290 per cent increase over the previous corresponding period.
The company said in a statement the result was higher even than profit for the full 2016 financial year.
The result reflects strong demand for the company’s infant formula, both in Australia/new Zealand and China. Revenues increased by 62 per cent and 348 per cent in Australia and China respectively, and Operating EBITDA by 104 per cent and 1,021 per cent respectively.
“The half-year results show continued progress against the Company’s objective of building a global brand based on the health and digestive benefits of nutritional products containing only the A2 beta casein protein – free of the A1 protein,” said Managing Director Geoffrey Babidge.
“This has involved continuing to grow the established positions in fresh milk and infant formula in Australia while also investing in the key international growth initiatives in China, the United States and the United Kingdom.”
A2 markets its products around the fact that they contain only the a2 beta casein protein and the a1 protein.
The result contrasts with the performance of competitor Bellamy’s which has seen lower sales in China and falling profit.