New Zealand milk specialist A2 Corp. has expressed confidence in its plans to expand internationally as it booked near-50% jump in first-half sales.
In the six months to the end of December, A2C said that sales totalled NZ$28.3m (US$23.5m), up 48.7% year-on-year. The company said that effective cost management meant that EBITDA for the six months rose broadly in line with sales, climbing to NZ$2.8m, up from NZ$1.6m.
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Revenue gains were boosted by higher sales and market share in Australia, chairman Cliff Cook said.
“Whilst the Australian supermarket chains are going head to head in discounting standard milk, A2 brand sales have continued to accelerate with no change in our pricing,” he said.
A2 makes pure milk from cows that produce the A2 beta casein protein rather than A1. The product is targeted at lactose intolerant consumers. The company claimed it was able to protect its price positioning by remaining focused on this niche market, which commands a price premium.
“Our success in Australia gives us confidence for our international expansion,” Cook added.
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By GlobalDataThe company operates in New Zealand and Australia and plans to launch its A2 fresh milk brand in the UK during 2012 through a joint venture with Robert Wiseman Dairies.
A2C is also increasing its production capabilities in Australia, with the opening of a new fresh milk processing facility in Sydney, and eyeing expansion into other international markets and categories.
“Progress is being advanced to introduce an a2TM brand infant formula commencing with a market in Asia,” A2C revealed.
