The sales growth of a2 Platinum infant formula across Australia, New Zealand and China reached $73.9 million after previously advised sales for the four months to October 31 was just $38.0m.
As a result, the full year forecast has been revised upward, with an anticipated revenue of $335m-$350m, up $35m on its previous forecast.
Much of the recent sales success has occurred within Australian grocery and pharmacy channels, but direct sales into China increased significantly with strong growth in the cross-border e-commerce channels and mother and baby retail stores.
The company’s China e-commerce strategy was centred on building multiple, strong relationships with profile providers such as Tmall and JD.com. Tmall data showed sales from a2 Milk Company’s flagship store were in the top three cross-border infant formula brands.
Commenting on the company’s strategic agenda, managing director Geoffrey Babidge said “There has been a focus on growing and broadening the ANZ milk business and developing growth opportunities in select international markets. We are pleased with the growing level of distribution for a2 Milk in the state of California and the repositioning of our brand in the UK”.
A2 Milk has been launched into the United States West Coast and the product was positioned in the specialty milk section, which remains the fastest-growing segment of the total milk category. A2 now has an established milk sourcing, processing and logistics supply chain, with a farmer base in Nebraska and a best practice on-farm management programme with its suppliers.
In the United Kingdom, A2 has also positioned its fresh milk product in the premium specialty milk segment, with distribution having grown to around 1200 stores. The product portfolio is to be extended to UHT long life milk, and trials of a2 Platinum infant formula will be launched.
Meanwhile, the company share price has soared since the release of the financial results, up to $2.55, from $2.03 on Wednesday.
