The A2 Milk Company’s transformational 12 months pays off
The A2 Milk Company this week announced it has already brought in AUD $148 million of revenue for the first four months of its 2017 financial year.
This is an increase of 96 per cent on the first four months of its 2016 financial year.
Reflecting on the success of the A2 Milk Company at its Annual General Meeting held in Australia this week, Chairman David Hearn said the past year has “ben truly transformational for The A2 Milk Company.”
“Transformation is often an overused word, but in this case it represents quite possibly an understatement,” Hearn said.
“The past 12 months have seen quantum shifts in market presence, in consumer awareness, in revenues and, ultimately, in earnings. And it’s worth noting that if we go back only two years ago the Company today bears little resemblance to the business then,” he said.
A2 Milk Company goes far beyond Australia
Hearn said the A2 Milk Company began its 2016 financial year mainly focusing on the Australian market. He said although its position as an infant formula producer was encouraging, the company was still in an undeveloped position.
A year later things have changed dramatically for the A2 Milk Company.
For the A2 Milk Company’s 2016 financial year, its infant formula group revenue was NZ $214.4 million. This is a significant jump on the NZ $41.7 million revenue infant formula brought in for the A2 Milk Company in its 2015 financial year.
During the company’s 2016 financial year, infant formula accounted for 61 per cent of the A2 Milk Company’s group revenue.
The A2 Milk Company attributes the growing success of its infant formula in China to the established reputation of the A2 brand in Australia and a growing awareness of the possible benefits of consuming dairy products only with the A2 protein.
“The outstanding progress of the business over the past year has also transformed our financial position, with earnings and cash flow considerably in excess of our expectations at the start of the year,” Hearn said at the annual meeting.
“As foreshadowed, provided that these positive trends continue and also provided that there is no need for substantial additional capital expenditure, the Board currently expects to adopt a dividend policy following the competition of this financial year,” he said.