Total revenue of the marketing company rose a whopping 68 per cent to $922 million and the profit after tax more than doubled to $195m.
New chief executive Jayne Hrdlicka expected more growth in China where the company has doubled it market share of nutritional baby formula from 2.8 per cent 5.1 per cent.
The number of outlets where Chinese buyers could purchase A2 milk had increased from 3800 stores to 10,000 stores and it could also be ordered online, she said.
Responding to queries from Stuff, chief financial officer Craig Louttit said the company held worldwide patents that had lifespans varying between five and 15 years. Some original patents from 20 years ago had expired and the testing patents for cow herds had «rolled off» two years ago.
He declined to go into details for «commercially sensitive» reasons but Hrdlicka said farmers were certified by the firms such as Fonterra and Synlait that supplied milk products to the A2 Milk Company.
In Australia, A2 Milk-branded fresh milk market share by value grew from 9.3 per cent to 9.8 per cent.
The US business grew thanks to an increase in distribution through 6000 stores, and sales also lifted in the UK.
The company launched new three new milk powder products – including an A2 milk powder blended with mānuka honey.
Hrdlicka said the 2018 financial year had been «transformative».
«Our brand and unique approach are working across multiple products and markets and we are seeing real momentum building in China and the US.»
By: Chris Hutching
Source: Stuff
Link: https://www.stuff.co.nz/business/106465221/a2-milk-rides-wave-of-rising-sales-in-china-and-us
