a2 Milk sold a staggering $NZ724 million worth of baby formula last year, with China demand soaring

STR/AFP/Getty Images
  • a2 Milk reported net profit after tax of $NZ195.7 million, up 116%.
  • Total revenue was $NZ922.7 million, 68% higher.
  • a2 Platinum infant formula sales revenue came to $NZ724.2 million, an increase of 84%.

a2 Milk Company posted a 116% jump in full year profit to $NZ195.7 million as sales of its infant formula surge in Chin and in Australia.

The company says its share of the massive China market grew to 5.1% and in Australia to almost a third (32%).

The company is now distributing to 10,000 stores in China and 6000 in the US.

Total revenue was $NZ922.7 million, a jump of 68%. a2 Platinum infant formula sales revenue was $NZ724.2 million, an increase of 84%.

At he close, a2 Milk shares were up 5% to $10.60.

CEO Jayne Hrdlicka says 2018 has been a transformative year.

“Our brand and unique approach are working across multiple products and markets and we are seeing real momentum building in China and the US,” she says.

“Significant progress has been achieved in Australia, China and the USA and important emerging market opportunities are starting to materialise.

“The company has continued to invest in brand building and advertising and in the strength of the organisation, as we build capability and capacity to deliver on growth against our core opportunities.”

a2 Milk expects further growth in revenue in nutritional products in Australia and China, and liquid milk in the US.

Dividends will not be paid.

“The board continues to consider the appropriate use of the Company’s available capital to support further value creation from the company’s growth strategy and supply chain development,” a2 Milk said.

The 2018 results:

Source: a2 Milk

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.