New Zealand dairy group A2 Corp. has booked a decline in first-half profits, as the cost of establishing its UK joint venture dented the bottom line.

In a filing with the New Zealand stock exchange, the company revealed net profit in the six months to the end of December dropped 82% to NZ$554,000 (US$456,105). Profits were hit by the start-up cost of establishing A2’s UK joint venture with Muller Wiseman Dairies, which totalled NZ$1.5m. EBITDA, however, was up 54% to NZ$3.46m.

Sales gained 57% to NZ$44.3m, boosted by increased market share in Australia. The company was upbeat on the sales outlook for the full year and emphasised it is making progress on its goal to launch an infant formula product in China.

Click here for the full release.