The a2 Milk Company has continued to see stellar growth driven by rising demand for its A2 milk-based products in China and the US.
The company saw its net profit rise 55.1 per cent to $NZ152.7 million in the six months to December 31, and its China segment revenue rose 50 per cent to $NZ171.7m.
A2 milk is produced by cows specially selected to produce only A2 beta-casein protein, which some consumers with a perceived dairy intolerance claiming to be easier to digest.
Group infant formula revenue rose 45 per cent on the prior year to $NZ495.5 million, with China label revenue up 83 per cent. The company says growth of its brand leader a2 Platinum infant formula remains significant in grocery, pharmacy and daigou (Chinese personal shopper) channels.
a2 Milk also reported growth in its liquid milk business of 20 per cent to $NZ83.4 million, particularly in Australia and the US. US milk revenue grew 114 per cent with distribution growth to over 10,000 stores with a further 2400 stores recently added. The company says growth in the US milk market flowed from investment in brand awareness and a stronger distribution base.
a2 Milk is also the fastest growing major liquid milk brand in Australian supermarkets, according to the company, and is the only brand ranged in all major Australian supermarkets. The Australian fresh milk business saw 11 per cent revenue growth and now has 10.8 per cent market share, up from 10 per cent for the same period a year ago.
The a2 Milk Company says it plans to invest in branding and marketing activities in the second half of the year to drive brand awareness, particularly in China and the US.