Although in line with the company’s expectations, it recorded earnings before interest tax depreciation and amortisation (EBITDA2) of $97 million, down 45.3 per cent on the corresponding period from last year.
Net after tax profit, including the non-controlling interest, was down 53.3 per cent to $56.1 million.
The a2 Milk Company’s managing director and CEO David Bortolussi said despite challenging market conditions in China and COVID-19 volatility, “we are making good progress stabilising the business”.
“The growth strategy we announced in October last year to respond to a rapidly changing China market has been completed and implementation is under way with good early progress across a range of initiatives,” Mr Bortolussi said.
“We remain confident in the long-term China infant milk formula market, and we are growing share in our China label business in-store and online with strong consumer off-take and share growth.”
Australian fresh milk revenue increased marginally by 0.2 per cent compared to the same time last year, supported by COVID-19 lockdowns and price increases.
Successful trials of a2 milk UHT product were completed, leading to a full national launch this year.
The company gave no formal profit guidance, but noted the outlook had improved for the second half of the year, with growth expected due mainly to growth in the Chinese and English labels.
“However, this revenue improvement is not expected to translate into higher earnings as the company significantly increases brand and other reinvestment consistent with its growth strategy,” the company statement said.
Revenue was marginally lower compared to the same period last year, at $660.5 million.
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