Skyrocketing sales in China and booming baby formula sales have seen The a2 Milk Company’s profits triple to $82million in after tax profit in the past financial year.
In the company’s annual report, released last week, the company revealed a jump of more than 130 per cent in revenue from China and Asia.
Australian sales have increased 48 per cent, bringing in almost $440million in revenue, yet infant formula continues to be the driver for the company with sales increasing by 84 per cent, generating almost three quarters of the company’s revenue.
Chief executive officer and managing director Geoffrey Babidge said the company was looking to expand further, with a new infant formula product and a milk powder range to be released.
He said the company intended to grow its current markets, while also exploring regions for further expansion.
‘‘The company has a number of initiatives under way to progress portfolio growth in nutritional products and to extend its business into emerging markets, without loss of focus on current initiatives,’’ Mr Babidge said.
‘‘With a strong cash position and no debt the company is in a robust position to continue the implementation of its growth strategy.’’
Chairman David Hearn said a shift in consumer ideals had driven the company’s growth.
‘‘Our performance is a function of the growing consumer interest in health and nutrition and the success of the highly focused and disciplined growth strategy we have been following over many years,’’ Mr Hearn said in the report.
‘‘Concern for health and nutrition is a global phenomenon and hence the company sees opportunity in both portfolio and geographical expansion.’’