a2 Milk just posted another record profit with its China infant formula

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  • a2 Milk posted a profit of $NZ124.9 million, up 60%, for the first four months of the financial year.
  • The company says momentum in China continues to build using a multi-channel strategy.
  • In the US, another 3000 stores have been added to the network taking the count to 9000.

a2 Milk Company’s profits marched higher with soaring sales of infant formula to China, and expansion into the US, in the first four months of the financial year.

The company today announced a record result for the four months with revenue of $NZ368.4 million, up 40.5% over the same period last year.

Profit before tax was $NZ124.9 million, up 60%, and net profit after tax is $NZ86 million, up 64.5%. EBITDA was $NZ124.2 million, up 58.5%.

A short time ago, its shares were up 2% to $A10.005.

The company says momentum in China continues to build using a multi-channel strategy.

a2 Milk added distribution of another 2000 stores in the Mother and Baby channel to a total now of 12,000 stores.

In the US, another 3000 stores have been added to the network taking the count to 9000.

The company expects strong revenue growth to continue but at a slightly more moderate rate than in the first four months.

“We have had a great year and we are off to a strong start in FY19,” CEO Jane Hrdlicka told the company’s AGM.

“We have a strong brand, special culture and unique proposition, the combination of which positions us very well for the future.

“We are well prepared for continuing improvements in the regulatory framework which governs special foods in China, including infant formula.

“The good news is that as a team we feel we have really only just scratched the surface of our potential as a business.”

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