A2 Milk Company has strong start to FY19
THE A2 Milk Company is off to a FY19 flyer, lifting its earnings for the first four months of the year while appearing unfazed by the prospect of higher marketing costs, and the impact of China’s new cross-border e-commerce laws. The expanding dairy and infant formula producer lifted net profit by 64.5 per cent to $NZ86 million ($80.62 million) between July and October while revenues rose 40.5 per cent to $NZ368.4 million. Shares in A2 lifted by as much as
7 per cent in early trade, and were up 2.04 per cent to $10 on Tuesday.
Chief executive Jayne Hrdlicka is sticking by the company’s previous guidance for this financial year of more moderate revenue growth while underlying earnings are expected to be broadly in line with last year.
The New Zealand-based company’s expansion into China and the US is set to increase A2’s marketing costs, but its increasing share of the Australian fresh milk market, as well as further growth for its flagship A2 Platinum infant formula, is fuelling a positive outlook.
“We have a strong brand, special culture and unique proposition, the combination of which positions us very well for the future,” Ms Hrdlicka said.
MILKING IT: Dairy and infant formula producer the A2 Milk Company lifted profit by 64.5 per cent.