20 Nov 2018

A2 Milk sales and profit at record levels

12:38 pm on 20 November 2018

Dairy company A2 Milk's sales and profit are at record highs, just four months into this financial year.

In a trading update released to the market this morning, A2 said its net profit was $86 million for the four months to October, an increase of 64.5 percent on the same time last year.

Revenue was up 40.5 percent to $368.4m.

A2 chief executive Jayne Hrdlicka said its strong finances so far this year were due to growing demand China and the United States, and its Australian fresh milk business reaching a 10 percent share of the market.

However, she said its revenue would grow more modestly for the rest of the year and the company's marketing, selling, and administrative costs would increase because it was making significant investment in China and the United States.

Ms Hrdlicka said the fresh milk sales deal A2 cut with Fonterra in August was now nationwide and performing well.

She said the company was not concerned about the regulatory changes for e-commerce sales in China.

"We are good listeners and we are well prepared for continuing improvements in the regulatory framework which governs special foods in China, including infant formula," Ms Hrdlicka said.

A2 Milk's annual shareholder meeting is being held in Victoria, Australia today.