A2 Milk Co., the New Zealand-based dairy group, has forecast underlying earnings will more than double in 2015/16, building on a year of robust growth.
The company has predicted operating EBITDA will more than double to NZ$12m (US$8m). It also expects revenue to jump in the new financial year. A2 Milk is forecasting revenue will increase 72% to NZ$267m.
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The forecasts came as A2 Milk reported its results for the year to the end of June.
The company saw revenue jump 40% to NZ$155.1m.
It made a net loss of NZ$2.1m after accounting for costs linked to its stock market listing in Australia and to an employee share scheme.
A2 Milk reported operating EBITDA of NZ$$4.8m before non-recurring costs, representing a 35% increase on the year. It said it had seen a "record operating performance in Australia and New Zealand".
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By GlobalDataMD Geoffrey Babidge said: "The company's growth initiatives continue to progress in a very positive manner and the results of this are now evident in the FY15 trading results. The Australian business continued to perform very strongly and returned a record result for the region. The growth in A2 Platinum infant formula in ANZ and China was exceptional and provides a potentially significant earnings contributor for the future. We were also pleased with the commencement of sales activities in the USA milk market and repositioning our product offering in the UK market."
A2 Milk is looking to expand in existing markets through product launches or distribution.
In Australia, A2 Milk's largest market, the company launched ice cream earlier this month. Two months ago, it rolled out whole milk powder. The company said it is "optimistic about the growth prospects for these new products in Australia and potentially in other markets over time".
In China, A2 Milk plans to launch whole milk powder through e-commerce and cross-border distribution channels during the new financial year.
In the US, the company is looking to extend distribution of its recently-launched milk into more states over the next 12 months.
A2 Milk hinted at moves to expand its product portfolio in the UK, where it sells milk. It said there could be the "potential introduction of UHT milk and A2 Platinum infant formula" in the market.
