Chinese demand triples a2 Milk’s profits

The FY17 results for dairy company a2 Milk have been released for the period up to 30 June 2017.

Overall, the New Zealand-based company tripled its annual net profit to €55.4 million from €18.6m through June driven by growth in demand for its infant formula in China and Australia – which generated 72% of company’s total revenue.

Earnings of €86.3m more than doubled since the previous year, as revenue increased by 56% to €335.8m.

The UK market saw strong growth in fresh milk sales and brand awareness. Distribution through existing and new major retailers also expanded with the company’s first listing in Asda in June 2017 – total UK distribution of approximately 1,600 stores.

New product development planned for 2018 fiscal year includes the launch of a2 Platinum Stage 4 infant formula for children three years and above and extension to milk powder range.

The company’s focus is on building a broader portfolio of dairy-based nutritional products including pure fresh milk to customised infant, children and adult nutrition, containing only the easy to digest a2 protein.

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