In FY2015, The a2 Milk Company
(ASX:A2M) reported a net loss after tax of $2.1 million. However, there has been a major improvement in the company’s results. In FY16, the company reported a net profit of $30.4 million. In addition, a2 Milk’s total revenue increased 127.4% to $352.8 million.
The company says a major driver of this result was exceptional sales growth of a2 Platinum infant formula in Australia, NZ and China (with sales shooting up 414%).
The company also says the increased demand for a2 Platinum in Australia and China during the first half of the year created challenges in balancing supply, production and logistics. This has been met with the help of Synlait Milk, its manufacturing partner, with whom a2 Milk signed a new supply agreement with yesterday.