a2 Milk's half year profit has risen dramatically to $NZ10.1 million ($A9.34 million), on the back of demand for its infant formula.
The record half-year profit for the six months to December 31 compares to the profit of $NZ125,000 for the previous corresponding period.
In addition, the company’s total revenue rose to $NZ139.1 million, an increase of 86 per cent compared the previous corresponding period.
Revenue from sales of a2 Platinum infant formula across Australia, New Zealand and China were $73.9 million, an increase of 340% on the previous period. This compares with previously advised sales for the four months to 31 October 2015 of $38.0 million.
The company said it now expected full-year operating profit to be in the range of $45m to $49m, with revenue of $335m to $350m.
“The Company’s strategic agenda has been focused on growing and broadening the ANZ milk business and developing growth opportunities in select international markets,” commented a2 Managing Director Geoffrey Babidge.
“Following a period of development, a2 Platinum infant formula has become a significant contributor to growth and earnings in ANZ and China, which we see continuing. In addition, we see positive prospects for growth of a2 Milk whole milk powder, which was first launched late last financial year.
“We are pleased with the growing level of distribution for a2 Milk in the state of California and the repositioning of our brand in the UK during the period.”