Shares in Synlait Milk are surging

Baby formula in a supermarket in Haikou, south China’s Hainan province. Photo: STR/ AFP/ Getty Images.

Shares in Synlait Milk jumped after the New Zealand-based infant formula company posted strong revenue growth numbers for the latest half year.

A short time ago, the shares were up 12.8% to $8.59.

Revenue lifted 52% to $NZ439.3 million and profit jumped 283% to $NZ40.6 million for the six months to January 18.

CEO John Penno says the strong earnings growth was driven by increases in sales as well as improved margins.

Synlait Milk has exposure to the growing China market through its relationship with the a2 Milk Company.

The company is a2 Milk’s exclusive manufacturer for the Australia, New Zealand and China markets. a2 last year bought a 8.2% stake in Synlait.

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