A2 Milk has lifted its full-year profit guidance as demand from China continues and the company adjusts to new infant formula regulations in that country.
The company said in a statement that it is coping well with the regulations and, as such, group revenue is now forecast to be in the range of $350 million to $360 million and Group Operating EBITDA in the range of $52 million to $54 million for the 2016 financial year.
“In addition, the balance sheet position is forecast to be strong at year end reflecting improved operating cash flow in the second half with cash on hand likely to exceed $50 million,” the statement said.
“The Company is also pleased with the recent announcement that it will be added to the S&P/ASX 200 index effective after the close of trading on 17 June 2016.”