STR/ AFP/ Getty Images.A customer selects baby milk in a supermarket in Haikou, south China’s Hainan province.
Synlait, which supplies a2 Milk’s infant formula for China, posted a full year net after tax profit of $NZ74.6 million, almost double last year’s $NZ39.5 million.
The company says an increase in infant formula sales helped to drive the result. Revenue was $NZ879 million, up 15.8%.
Its partnership with a2 Milk grew with an extended supply agreement and a minimum five year term to July 2023.
“Synlait will continue as the exclusive manufacturer of the a2MC’s infant formula for the Australia/New Zealand and China markets,” says CEO Leon Clement.
“This agreement is really positive for both companies as it strengthens the relationship and provides certainty for all.”
after tax of $NZ195.7 million, up 116%, with its share of the massive China infant formula market growing to 5.1%.
Synlait has also been working to secure product registration in China for New Hope’s Akara and Bright Dairy’s Pure Canterbury brands.
The Munchkin Grass Fed infant formula registration is also progressing through the regulatory process with the US Food and Drug Administration.
“The Grass Fed product is doing well in Australia, following its introduction into the nationwide supermarket chain Coles,” says Clement.