The A2 Milk Co. is raising its forecasts for its full-year sales and EBITDA on “a very positive start” to its 2015/2016 financial year.
The New Zealand-based dairy firm said its infant formula business had performed “well ahead of plan” in the first four months of the period.
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Initially, it had forecast revenue growth of NZ$267m (US$172.9m) and group operating EBITDA to NZ$12m for the full year. It has now revised this upward to NZ$285m and NZ$22m respectively.
CEO Geoffrey Babidge said: “The Australian and New Zealand business continues to perform exceptionally well with fresh milk growing and A2 Platinum infant formula significantly ahead of plan. The new supply and distribution arrangements in China are also yielding positive results with sales growth for infant formula exceeding expectations.”
Babidge added infant formula is emerging as a “more significant growth driver” for the company. Revenue from A2 Platinum infant formula in the four months to 31 October totalled approximately NZ$38m, compared to $8.7m over the same period last year.
“This exceptional performance indicates the increasing appeal and growth potential for the A2 Platinum brand in both ANZ and China and additional markets in the future,” said Babidge.
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By GlobalDataMeanwhile, Australia’s Freedom Foods Group today (17 November) announced it was selling its entire stake in The A2 Milk Co., just under a month after offloading some shares.
