A2 Corporation has more than trebled its profit as it looks to start selling its milk in the UK and Ireland this year.
Net profit for the six months ended December 31 was $3.1 million compared with $894,000 the previous year, with revenue up 55.9 per cent to $30.1 million.
Managing director Geoffrey Babidge said a focus on effective marketing and communication, and management of costs ensured earnings before interest, tax, depreciation and amortisation had grown broadly in line with sales.
“Considerable achievements were made consistent with our growth strategy to position [A2 Corporation] as an innovative fast moving consumer goods and ingredients company with a global focus,” Babidge said.
The NZAX-listed company looked forward to the launch in the UK later this year “and our further expansion into additional markets of interest in the not too distant future”.
There are two types of milk, A1 and A2, which are usually mixed together. A2 Corporation owns and commercialises intellectual property, with its products coming from cows selected to produce the A2 beta-casein protein.
The A1 beta-casein protein has been linked by some people to conditions including heart disease and diabetes.
Chairman Cliff Cook said the result was very pleasing in the face of continuing price discounting in fresh milk in Australia.
The company’s sales in Australia of A2 brand fresh milk had continued to accelerate with no change in pricing, and a current market share by value in the grocery channel estimated at 4.7 per cent, Cook said.
The company said it would this month commission its own A$8.4 million fresh milk processing facility in Sydney, which initially would produce product for the New South Wales market.
by Owen Hembry