26 Feb 2014

Australia growth helps A2 profit

1:25 pm on 26 February 2014

Speciality milk company A2 Corporation points to growth in the Australian market as the reason for the company's 16 percent rise in profit.

Profit rose to $643,000 in the six months ended December, compared with $554,000 for the same period the year before.

The company's revenue jumped 22 percent to more than $54 million.

The company said it was the fastest growing dairy brand in the Australian grocery market, and now has 8 percent of the market.

Managing director Geoffrey Babidge said momentum was also building in Britain, although revenue growth there is below what they'd hoped and changes were being made.

In the last six months A2 Corporation had become full owner of its UK subsidiary and business partner Muller Wiseman Dairies had become the firm's contract packer.

"This change in structure has enabled us to be able to be more focused in taking the business forward more quickly," Mr Babidge said.

The first-half sales also include the first sales of infant formula milk to China.