The A2 Milk Company posted a 30% profit growth for the past year ending June 34,1. Marketing milk with more digestible protein is apparently a profitable business for the specialist New Zealand company.
Net profit after tax was NZ$358,8 million (converted €197,57 million). In the past financial year, turnover amounted to NZ$1,73 billion (converted €974 million).
The listed A2 Milk Company has grown faster year on year since 2017. In 2017, the annual turnover amounted to no more than NZ$550 (converted €million 302,5), less than a third of the annual turnover of the past financial year. The same picture can be seen in earnings per share.
Child nutrition important in China
The favorable results reflect continued growth in the infant nutrition segment, according to the company. In China, sales of A2 infant formula milk doubled to NZ$337,7 million (EUR 185 million). Liquid milk sales in Australia grew 14,1% to NZ$152,5 million (€83 million) and US sales nearly doubled over the year to NZ$66,1 million ( converted €36 million).
The largest part of the turnover is realized in Australia and New Zealand, but China is also an important sales market. Infant nutrition accounts for a much larger part of the turnover than the turnover generated by A2 drinking milk. In Europe, turnover is only a few million euros per year, especially in the United Kingdom.
More online because of corona
The effects of a favorable exchange rate have a positive effect on the company's result. The uncertain corona time has not turned out wrong for the A2 Milk Company so far. While every effort was made to continue to supply customers and consumers with A2 milk, online sales in particular increased and even recorded a modest profit in the last quarters of the past financial year, compared to the six months prior to the corona crisis.
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