26 Apr 2017

A2 Milk expects big boost from formula sales

12:07 pm on 26 April 2017

Booming sales of infant formula in China are expected to drive record earnings this year for A2 Milk.

 Infant formula on sale in China.

Infant formula on sale in China. Photo: AFP

The specialty milk products company has raised its outlook for the second-half of the trading year because of higher sales and revenue.

A2 warned in February that the second half could be weaker, because of reduced demand resulting from the timing of retail events in the key market China.

But since then, it said infant formula sales - especially in Australia and China - have been ahead of expectations, and it has boosted production with its manufacturing partner, Canterbury-based Synlait Milk.

A2 said sales should be ahead of the first half and group revenue would climb to $525m in the full-year compared with last year's $353m.

The company's first half net profit jumped to $39.4m, with sales nearly double and revenue up 84 percent.

Get the new RNZ app

for ad-free news and current affairs