NEW ZEALAND: A2 Corporation shares up on H1 results
Shares in dairy company A2 Corporation (A2C) rose today as the New Zealand-based group recorded its first unaudited group profit after tax.
The company's share price rose 11.1% today to NZ$0.15 a share as the company recorded NZ$893,517 (US$674,050) unaudited group profit after tax for the six months ended 31 December, which it said is a $1.6m turnaround on the comparable period last year.
Consolidated trading revenue, including subsidiaries was $19.3m.
A2C said the latest financial result reflects the benefit of the acquisition of the 50% of the Australian business it did not already own, as well as the implementation of a "new agenda for growth".
Chairman Cliff Cook said: "A2C has undergone a transformation over the last two years from a developer of intellectual property to a producer of premium priced fast moving consumer goods and ingredients with a global focus. The financial results reflect this change."
The company, which produces milk using the A2 form of beta-casein, said that sales of A2 fresh milk and dairy products in Australia has continued to grow rapidly through supermarket chains and independent grocery stores in the last six months, achieving an estimated 3.7% share of fresh milk sales by value in the grocery channel.
A2C is building an AU$7.5m processing facility in Sydney, to be commissioned in the fourth quarter of 2011.
Speaking about the company's plans, managing director Geoffrey Babidge said: "Our immediate aims are to continue to expand in Australia and New Zealand, to enter new beverage markets with partners and to supply powder and infant formula sourced locally, initially into Asia."
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