Synlait Milk Company is reporting a tripling in profits, on the back of a big increase in sales of infant milk formula.
Big profits will spell more jobs in Canterbury's dairy industry.
Synlait Milk Company is reporting a tripling in profits, on the back of a big increase in sales of infant milk formula.
Revenue rose from just under $450 million to more than $550 million.
Managing Director John Penno said on the back of the company's success will come new jobs.
He said around one hundred people have been employed within the last year.
"There'll be a few less than that in the next year, but as we start up new parts of the business, and new pieces of plant that we're planning to invest in, there'll be jobs coming alongside that."
The company said it planned to raise a further $98m in a rights offer to expand its infant formula manufacturing, consumer packaging, infrastructure requirements and value-added cream manufacturing.
"Synlait is a growth company. Our FY16 performance highlights the progress we've made since our IPO in 2013 towards our aspiration of making more from milk," said chairman Graeme Milne.
"We are looking at investing approximately $300 million in capital growth projects over the next three years to solidify this position and continue pursuing profitable opportunities to make more from milk."
Under the rights offer, eligible shareholders will be entitled to acquire two new shares at $3 apiece for every nine existing shares up to 32.5m new shares will be available.
The company's largest shareholder, China's Bright Dairy, intends to participate in the offer to maintain its 39 per cent holding.
The shares last traded at $3.62, and have gained 15 per cent this year.
Additional reporting AAP/Scoop
'It is a much more efficient way of getting twice as many apples using a lot less water.'