a2 Milk has just cleared new regulatory hurdles in China for its infant formula

Mark Ralston/AFP/Getty Images

a2 Milk has cleared new regulations in China for the sale of its infant formula.

Formula processed by partner Synlait has just met new regulations under the China Food and Drug Administration to bring products into China through traditional import channels.

Changes in regulations last year hit producers of infant formula, including Tasmania-based Bellamy’s, stalling sales in China. All infant formula brands must be registered by January 2018.

Geoffrey Babidge, CEO of a2 Milk, says the flexible multi-channel infant formula strategy has positioned the company well in the context of the current regulatory requirements.

“We look forward to the continued expansion of our business in China following this announcement,” he says

Synlait and a2 Milk’s commercial relationship began in 2010 with a goal to manufacture the world’s first infant formula made from milk containing only the A2 betacasein protein type, and free from the A1 protein type. a2 Milk acquired an 8.2% shareholding in Synlait in March this year.

a2 Milk last month posted a 198% increase in annual profit to $NZ90.65 million.

Sales and earnings in China more than doubled to $NZ88.9 million ($A81.8 million) from $NZ38.2 million ($A35.1 million).

The company’s total revenue was up 55.8% to $NZ549.53 million ($A505.7 million).

Infant formula generated 72% of the company’s total revenue for the year, up from 61% in 2016.

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