Alternative milk brand A2 saw a 56% global revenue boost for the year to 30 June, on an “outstanding performance” in infant formula and growth in liquid milk.
Sales grew to NZ$549.5m, according to the company’s annual accounts, with EBITDA up 159% on the corresponding period last year at NZ$141.2m, and net profit after tax up 198% to NZ$90.6m.
Sales of A2 Platinum infant formula continued to grow strongly in Australia and China, with the product generating 72% of the company’s total revenue for the year - up from 61% in 2016. The company does not disclose its UK financial performance, but said fresh milk sales in the UK “showed strong growth on the prior year with continued marketing investment and improved customer engagement delivering operating profits for the first time”.
This improved performance was capped off by a major new listing in Asda - A2’s first with the retailer - in June, while the brand also expanded its presence in Sainsbury’s with extra listings for the semi-skimmed variant and a new listing for its whole milk nationally.
“The company’s continued growth reflects increasing consumer acceptance of the A2 brand and the benefits of dairy-based products free from the A1 beta casein protein type,” said A2 MD Geoffrey Babidge.
“We have continued to support and expand our brand proposition through effective marketing and promotional activities in each of our markets. Our support for relevant scientific research and continued investment in intellectual property are also key aspects of this strategy.”