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A2 Milk ups revenue guidance again

The a2 Milk Company has increased its full year revenue guidance for the second time in two months, in response to continued strong demand for its a2 Platinum infant formula in China.

The company said in a statement group revenue is now forecast to be approximately NZ$545 million ($A518 million) for the 2017 financial year, an increase of approximately NZ$20 million on the previous update.

In addition, the company said it had been working closely with its infant formula manufacturing partner, Synlait Milk, to uplift the production schedule for the remainder of the year.

As part of the commentary given at the time of release of the company’s first half results on 15 February 2017, the company advised that its investment in marketing would likely be higher in the second half by up to NZ$15 million, based on the planned phasing of communication and development activities across the year.

Due to changes in the phasing of the marketing investment, primarily in China, marketing expenditure in the second half is now expected to be approximately NZ$10 million higher than the first half of the 2017 financial year.

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