A2 Milk still growing in Australia, China

A2 Milk says demand for its milk and formula has continued to grow in Australia and China in the first quarter.

Shares in A2 Milk have risen after it said first quarter revenue was in line with expectations. (AAP)

Dairy company A2 Milk says first-quarter revenue is in line with expectations, reflecting continued growth in sales of infant formula and fresh milk.

In a quarterly update on Tuesday, A2 Milk said revenue for the first three months of 2016/17 totalled $NZ112.5 million ($A106.9 million), consistent with the company's expectation.

Sales of fresh milk in Australia and New Zealand were up seven per cent, and there was continued growth in demand for a2 Platinum infant formula.

In China, demand was growing as consumers became more aware of the a2 Platinum and a2 Milk brands.

The company said it was strengthening its Shanghai-based management team, with priority in marketing, sales and e-commerce.

The company has also engaged a China-based consultancy to help it better understand the market and A2 Milk's competitors; refine pricing and strategy; and understand the impact of regulatory changes.

In the UK, sales of fresh milk were up more than 50 per cent on the the prior corresponding period.

A2 Milk shares were up eight cents, or 4.27 per cent, to $1.955 at 1311 AEDT.