The infant formula and nutrition company also released other healthy forecasts for 2019-20, tipping that revenue would be in the range of $NZ780 million to $NZ800 million for the first half of the current financial year. The top end of that forecast is 30.5 per cent higher than the result for the first half of last year.
“Overall, for financial year 2019-2020 we anticipate continued strong revenue growth across our key regions supported by brand and marketing investment in China and the US and the development of both capability and infrastructure to support in-market execution,” a2 chief executive Jayne Hrdlicka told investors.
“As an outcome of strategic gross margin focus, full year EBITDA margin percentage is now anticipated to be stronger than previously communicated,” she said.
Surging sales in China and strong growth in other markets are the key factors behind the projected revenue growth.
The company is forecasting an 84 per cent jump in China label infant nutrition sales in the first half to about $NZ135 million, and a rise of about 54 per cent in cross-border e-commerce infant nutrition sales into China to $NZ155 million.
English label infant nutrition sales in Australia and New Zealand are tipped to rise about nine per cent to $NZ350 million, while fresh milk sales in Australia are forecast to rise 12 per cent to $75 million.