New Zealand’s a2 Milk Co Ltd reported a 21% rise in half-year profit on Thursday, aided by strong growth in its labelled infant nutrition business in China and milk revenue in the United States.
Adds details on half-year results, outlook
New Zealand’s a2 Milk Co Ltd ATM.NZ reported a 21% rise in half-year profit on Thursday, aided by strong growth in its labelled infant nutrition business in China and milk revenue in the United States.
The dairy producer posted a net profit of NZ$184.9 million ($116.73 million) for the six months ended Dec. 31 compared with NZ$152.7 million a year earlier.
The company said its sales from China label infant nutrition products doubled to NZ$146.7 million, while an expansion in the United States led to a more than 100% rise in sales there.
The company said it was uncertain about the impact of the coronavirus outbreak on supply chains and consumer demand in China.
However, it kept its forecast for full-year earnings before interest, taxes, depreciation, and amortization margin unchanged in the range of 29%-30%.
A2 Milk’s sales from China, the world’s top market for formula milk, and other Asian markets grew about 77% in the first half.
The company, New Zealand’s fifth largest, said total revenue for the six months rose about 32% to NZ$806.7 million.
($1 = 1.5840 New Zealand dollars)
(Reporting by Anushka Trivedi and Aby Jose Koilparambil in Bengaluru; Editing by Arun Koyyur)