Shares in The A2 Milk Company have hit a record high after a boom in infant formula demand in China and Australia almost tripled its annual profit to $NZ90.6 million ($A83.1 million).
The company also announced an on-market share buyback of up to $NZ40 million over the next year and said it will consider a special dividend in light of progress of the buyback and future market conditions.
A2 Milk listed on the ASX in 2015 at 56.5 cents a share, and gained 31 cents, or 6.9 per cent, to $4.81 on Wednesday.
The company is also listed in New Zealand.
It said sales in the year to June 30 rose 56 per cent to $NZ549.5 million ($504.2 million), underpinned by a strong performance in infant formula and continued growth in demand for liquid milk in each of its core markets.
Infant formula made up 72 per cent of the A2 Milk's total revenue, up from 61 per cent a year ago.
In China, revenue more than doubled to $NZ88.9 million ($A81.6 million) as consumers became more aware of the A2 Platinum infant formula brand.
Sales revenue in Australian and New Zealand rose 48 per cent to $NZ440 million ($A404 million), with sales of fresh milk and whole milk powder improving alongside infant formula.
The dairy company said its UK business returned its first annual operating profit, underpinned by strong growth in fresh milk sales and a contributions from infant formula sales, while its US business continued to build brand presence.
Chief executive Geoffrey Babidge said the company was pleased to keep up with the stronger-than-expected growth in demand for the A2 Platinum brand.
A2 Milk expects growth to continue in the 2017/18 financial year, particularly from its infant formula and milk powder products in Australia and China, and improved momentum in the US and UK businesses.
"With a strong cash position and no debt, the company is in a robust position to continue the implementation of its growth strategy," Mr Babidge said.
INFANT FORMULA DRIVES A2 MILK'S PROFIT GROWTH:
* Full year net profit of $NZ90.6m, from $NZ30.4m
* Revenue up 55.8pct to $NZ549.5m
* No final dividend, unchanged
