The A2 Milk Company (a2MC) has upgraded its full-year revenue forecast on the back of rising demand for its a2 Platinum infant formula.
The company, which recently advised it was expecting lower infant formula sales during the second half relative to the first half, said sales have exceeded its expectations since that time.
“Demand has been particularly strong in Australia, but also through the cross border e-commerce channel (CBEC) into China.
“In response to this continued very strong demand, and having regard to recent commentary relating to regulation of the CBEC channel, a2MC has been working closely with its infant formula manufacturing partner, Synlait Milk, to uplift the production schedule for the remainder of FY17,” the company said.
“On the assumption of continuing strong demand for a2 Platinum infant formula and production deliveries being achieved consistent with the revised production schedule, the company is now expecting infant formula sales for second half FY17 to exceed sales achieved in first half FY17.
“As a result, Group revenue for the 2017 financial year is forecast to be approximately NZ$525 million.”
