After several years focused fully on growth, it indicated again it was likely to formulate a dividend-paying policy at the end of the June year.
A2 achieved sales of $256 million in the six months ended December 31, up from $139m at the same time a year earlier.
Operating earnings (Ebit) jumped to $62.5m from $17.5m and the after-tax profit almost quadrupled to $39.38m from $10.1m.
The half-year exceeded the results for all of the 2016 year, managing director Geoff Babidge said.
Operating cashflow was very strong at $38.1m, from an outflow of $9.96m previously.
Tremendous growth in the Australian and Chinese businesses underscored the improvement, with the greatest gain being in the demand for A2 Platinum infant formula provided by South Island dairy processor Synlait Milk.
Australian revenues jumped 62% and operating Ebitda by 104% while in China sales were 348% higher and earnings up by 1000%.
As well as demand growth, the trading improvement was also because of some product shortages in the previous year, Babidge said.
In China, second quarter sales were boosted by key sales events unlikely to be repeated in the second half of the year.
A2 increased market share in the infant formula sector in both Australia and China.
The company continued with a range of clinical and pre-schooler studies in China to further strengthen its market position.
It had adopted a prudent approach to inventory management as it awaited expected regulatory change for infant formula sales in China, Babidge said.
A2 also increased fresh milk sales in Australia, with market share steady at 9.3% in grocery outlets.
That part of the business effectively funded much of the development of the early stages of the China business and also the newer trading ventures in the United Kingdom and United States, though new capital was raised as well.
The UK business made an operating profit for the first time, with fresh milk sales up 45% on the same time a year earlier.
The US business was still in a start-up phase after launching in California in 2015 and now had about 1800 fresh milk sales outlets there, in the Pacific northwest and the “home” market in Colorado.
It had an agreement for distribution in Kansas, Missouri and Nebraska and next month there would be a launch into Florida, Georgia and Carolina by a contracted retailer with about 1100 stores.
As well as expecting lower infant formula sales in China over the second half of the year, though they would be well ahead of 2016 sales, Babidge said a marketing spend of about $15m, mainly in the US and China, would affect earnings.
At time of writing, A2 shares were 3c higher at $2.60 on the NZX after the earnings report.
