The bottom-line loss was $2.09 million for the year ended June 30.
Total revenues jumped 40% to $155m, and the group operating profit (Ebitda) was 35% higher than a year earlier at $4.81m. Australia revenues were a record, making up a large proportion of the total.
A2 Milk performed ahead of plan, managing director Geoff Babidge said.
The core Australian market had very good growth in sales of fresh milk and also the infant formula supplied from New Zealand, with an operating profit of $30m, up 60% on a year earlier. It now has a 9.3% fresh milk market share through the Australian grocery channel.
With the growth in the infant formula sales, and the need for whole milk powder, the group had secured more long term milk supply in NZ, with annual supply now more than 100 million litres. The infant formula is supplied by Synlait Milk in Canterbury,
The Australian earnings were offset by a $3.1m operating loss in China, where growth in infant formula sales was encouraging, and a $12m loss in the new fresh milk markets of the United States and United Kingdom. Income tax took $3.37m.
Babidge said there had been good retailer acceptance of A2 milk in both markets. Most of the big supermarket chains in the UK – including Tesco, Sainsburys, Waitrose, and Morrisons – as well as Harrods, stocked the product.
In the newer US market, A2 has only opened in southern California, but is due to be stocked in northern California in September, and the group is looking to start-up in other states as well.
As well as the establishing market losses, there were other corporate costs, including the one-off $1.6m costs of listing on the ASX in Australia.
A2 Milk had cash of $6.09m at the June 30 balance date, and there were no borrowings. Directors continued to closely monitor the appropriate capital needs for the business, Babidge said.
They had been looking at an equity raising but this was deferred when largest shareholder, Freedom Foods, and another group indicated an interest in a takeover offer. The board viewed the proposal as not compelling and there had been no further contact with those parties, he said.
A2 Milk shares fell 4c to 73c on the NZX after the result was announced.
