The A2 Milk Co. has raised its forecasts for annual sales and EBITDA for the second time in a month, pointing today (18 December) to a “significant uplift” in infant formula sales.
The New Zealand-based dairy firm is now forecasting sales of NZ$300-315m (US$201-211m) and operating EBITDA of NZ$$33-37m for the 2016 financial year.
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In November, A2 Milk revised its initial forecasts for the year, taking its estimates for sales from NZ$267m to NZ$285m and operating EBITDA from NZ$12m to NZ$22m after better-than-expected formula sales.
A2 said today it had experienced a “significant uplift in sales of infant formula in the month of November, exceeding the sales projected at the time of the previous forecast.”. It added: “This is expected to continue into the month of December.”
However, the group added the “changing and dynamic nature” of China and Australia’s infant formula markets continue to make forecasting challenging and the company would continue to monitor its performance and provide further commentary when it releases its first-half results in February.
“The infant formula market in Australia is rapidly evolving and experiencing significant growth. The company has recently increased the supply of A2 Platinum infant formula to our customers however we continue to experience a level of out-of-stocks on shelf. The strong trading performance advised today provides further evidence of the increasing appeal of the A2 Platinum brand in Australia and China and the growth potential in additional markets in future,” said managing director and CEO Geoffrey Babidge.
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