A2 Milk Com­pany has strong start to FY19

The Northern Star - Northern New South Wales Rural Weekly - - PAID CONTENT -

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.

PHOTO: CON­TRIB­UTED

MILK­ING IT: Dairy and in­fant for­mula pro­ducer the A2 Milk Com­pany lifted profit by 64.5 per cent.

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