Kyvalley Dairy Group's processing partner, The a2 Milk Company, has recorded an annual, after tax profit of $385 million.
The a2 Milk Company has become a market leading processor of infant milk formula and relies on the Kyvalley plant for supply of much of its A2 milk.
The publicly listed company now has a total revenue of NZ$1.73 billion, and NZ$337.7 million in infant nutrition sales into China.
Acting chief executive officer Geoff Babidge said they achieved strong growth in liquid milk businesses in Australia and the United States, with sales across the company totalling NZ$218.6 million.
Liquid milk sales in Australia were up 14.1 per cent to $152.5 million and sales in the US more than doubled compared to 1H19, driven by improved sales velocity in established stores as well as an expanded store footprint, Mr Babidge said.
“Our targeted exploration of new markets continues — in October we launched infant formula in the city of Hong Kong and in December we launched infant formula in Korea with our partner, YuhanCARE (Yuhan).”
Mr Babidge said they stepped up investment in China label infant nutrition business considerably in 2H19.
They reported strong sales in a2 Platinum China label infant nutrition of $337.7 million, double the sales in the prior corresponding period.
They also expanded their presence to 19,100 stores.
US milk revenue grew by 91.2 per cent.
The company has welcomed a new CEO, a long-awaited appointment after the sudden departure of high profile leader Jayne Hrdlicka last year, taking about $3.7 million in remuneration.
The board appointed David Bortolussi to the role of managing director and CEO based in Sydney, who will start in the role early in the 2021 calendar year. He succeeds Mr Babidge who has been in the CEO role on an interim basis since December 2019.
Board directors were paid a total of about $1 million last year.