A2 Milk profit rises as infant formula sales increase
A2 Milk has delivered a strong financial result, with increased sales in its infant nutrition business and with better than expected profit margins.
The specialty milk company's net profit rose 21 percent in the six months to December to $184.9m, with an underlying sales margin of 32.6 percent.
Sales rose 32 percent to $806.7m, with a 33 percent gain in the infant nutrition business.
Liquid milk sales in Australia and the United States rose 29 percent.
It said US sales more than doubled to $28m. The company aimed to achieve sales of US$100m.
It nearly doubled its spending on marketing, driving overall expenses up 63 percent.
It said the Covid-19 coronavirus could potentially increase supply chain costs, but expected its full year underlying profit margins to be in a range of 29 percent and 30 percent.
This article was originally published on RNZ and re-published with permission.
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