Specialty dairy company A2 Milk has posted a record half-year profit on the back of surging demand for its infant formula.
The company's net profit for the six months ended December was $98.5 million, compared with last year's $39.4m.
Its revenue rose 70 percent to $434.7m, because of strong demand in Australia and China for its infant formula products.
Managing director Geoff Babidge said it was a solid half-year performance and that was expected to continue.
"An especially pleasing aspect of our performance was the continuing strong growth in market share and sales of A2 Platinum infant formula in China, along with our success in adapting to the evolving regulatory environment in that market," he said.
Meanwhile, the company has announced a major strategic partnership with the country's largest dairy co-operative Fonterra.
Mr Babidge said the agreement meant Fonterra would manufacture A2 products for certain markets, including South East Asia and the Middle East.
He said it would also give Fonterra an exclusive licence to produce and sell A2 branded liquid milk in New Zealand.
Mr Babidge said the deal complements an existing agreement with South Island based Synlait Milk.
Fonterra said it would start talking to its farmers about supplying A2 milk.