a2 Milk Company revenue and profits rise by third
The a2 Milk Company has reported revenue and profit rises are up by a third in 2019-20, but the share price has fallen.
AUSTRALIA’S largest listed agribusiness, The a2 Milk Company, has seen its revenue and net profit after tax jump by a third in the past year.
Releasing its financial results for the year to June 30, the New Zealand dairy company posted revenue of $NZ1.73 billion ($A1.57 billion), a rise of 32.8 per cent from the $NZ1.3 billion ($A1.18 billion) recorded in 2018-19.
The NPAT for the past financial year was $NZ385.8 million ($A349.8 million), 34.1 per cent higher than the $NZ387.7 million ($A260.8 million) reported in 2018-19.
The company said it had strong performances in all key product segments and across all key markets.
“Our performance was robust throughout the year and we demonstrated significant resilience in the second half managing the business in the face of the COVID-19 global pandemic,” it said.
“Through these unprecedented times, we have been fortunate to continue experiencing strengthening levels of consumer demand and worked closely with our strategic partners and customers to ensure supply chains remained open and consumer needs continued to be met.”
Sales of infant nutrition products in China more than doubled to $NZ337.7 million ($A306.2 million) during the past year, with the Chinese distribution network now servicing about 19,100 stores.
The other bright spot was the US, where milk revenue grew by 91.2 per cent to $NZ66.1 million ($A59.9 million) and the distribution expanded to about 20,300 stores.
Milk sales in Australia rose a more modest 14.1 per cent to $NZ15.25 million ($A138.3 million).
Shares in a2M fell 6.36 per cent to $18.25 in today’s trading.
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