August 22, 2017 / 8:57 PM / a month ago

New Zealand's a2 Milk FY profit nearly triples on strong Chinese demand

Aug 23 (Reuters) - New Zealand’s a2 Milk Co Ltd said on Wednesday its full-year profit nearly tripled in the 2017 financial year, fuelled by soaring demand for its infant formula products in China.

Net profit after tax rose to NZ$90.6 million ($65.94 million) for the year ended June, from NZ$30.4 million a year ago, beating an average estimate of NZ$81.5 million from three analysts polled by Thomson Reuters.

Revenue jumped 56 percent to NZ$549.5 million, in line with the company’s June guidance of NZ$545 million.

The dairy company had originally predicted that sales in the second half of the year would drop, but strong Chinese demand for its flagship a2 Platinum infant formula product prompted the firm to reverse its forecast and raise its revenue outlook. ($1 = 1.3740 New Zealand dollars) (Reporting by Christina Martin in Bengaluru; Editing by Himani Sarkar and Alison Williams)

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