A2 Milk Company shares are on a tear

Jonathan Daniel/Getty Images

Shares in the A2 Milk Company soared in early trade.

A short time ago, they were up 11.8% to $1.135. Earlier this year the shares were at a low of 42 cents.

There was no news to explain the sudden rise.

Last week, the company upped its full year profit guidance on strong sales of its infant formula.

Based on current trading trends, the company revised its full year outlook to revenue of $NZ285 million, up from the $NZ267 million previously forecast.

And group EBITDA (earnings before interest, tax, depreciation and amortisation) is now forecast to be $NZ22 million, up from the previous forecast of $NZ12 million.

Demand for Australian-made infant formula is booming in China as consumers there seek a safe and clean product. A2 Milk is one of those brands which quickly go off the shelves.

A2 Milk, which only sells milk with the A2 type of protein from specially selected cows, last month completed a $NZ40 million capital raising to help expand the infant formula brand into Asia and the UK.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.