a2 Milk shares have taken off again

Image
A customer selects baby milk in a supermarket in Haikou, south China’s Hainan province. STR/ AFP/ Getty Images.

Shares in a2 Milk surged after the infant formula maker released a trading update forecasting further growth for its products in China and the US.

A short time ago, its shares were up 7.4% to $9.70.

Image

The company says revenue for the first three months of the financial year are consistent with the company’s expectations.

In China, the company’s share by value of the infant formula market rose to 5.6% from 5.1%.

In August, a2 reported full year net profit after tax of $NZ195.7 million, up 116%. Total revenue was $NZ922.7 million, 68% higher.