4 Sep 2012

Australians boost speciality milk company's profit

6:30 pm on 4 September 2012

Speciality milk producer A2 Corporation has more than doubled its profit due to more Australians buying its product.

The company, which is listed on the NZX alternative market, made a net profit of $4.4 million, up 108% on the previous year. Sales rose 48%, driven mainly by Australian consumers.

A2 says its milk is easier to digest because it lacks a gene found in the more common A1 milk.

Managing director Geoffrey Babidge says the company will use its success in Australia as a model for expanding to other countries.

"That business continues to grow on the back of effective marketing and communication, but also clearly a growing band of consumers who get substantial benefit from A2 milk."

Mr Babidge says A2 will launch in Britain in October and begin making infant formula in December, initially for China.

It will also work on ways of developing the brand in New Zealand.