A2 Milk shares soared to a record after the specialty milk marketer boosted first-half profit and raised its estimate for full-year earnings on a surge in demand for its infant formula in Australia, New Zealand, and China.
Profit jumped to $10.1 million in the six months ending December 31, from $125,000 in the same period last year, the New Zealand-founded and Australian-based company said in a statement. The shares increased 26 percent to $2.55, after earlier touching a record $2.60.
Substantial growth in sales of a2 Platinum formula and a 5 percent rise in fresh milk sales in Australia, the category that launched the brand across the Tasman, boosted total revenue 86 percent to $139.1 million. Australia and New Zealand still dominate revenue at $127 million.
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Managing director Geoff Babidge said following a period of development a2 Platinum infant formula had become a significant contributor to growth and earnings, accounting for 53 percent of revenue now compared to just 47 percent in November.