Shares in the a2 Milk company have jumped more than seven per cent to record highs as the company achieves stronger-than-expected infant formula sales in China and Australia.
The company said revenue jumped 49 per cent to $NZ388 million ($A357.5 million) in the nine months to March 31, and has upgraded its sales forecasts for the current financial year.
In February, a2 Milk said its sales in the second half of the financial year would be lower than in the first half, because major selling events in China were weighted towards the first six months.
But sales were strong in the three months to March, and second half sales are now expected to be higher than in the first half.
"Demand has been particularly strong in Australia, but also through the cross border e-commerce channel into China," the company said in a statement.
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It expects its annual revenue will rise to $NZ525 million ($A484 million), up from $NZ352.8 million in 2015/16.
In order to meet demand, a2 Milk is working with its infant formula manufacturer Synlait Milk to increase production for the remainder of the financial year.
The company's shares gained 23 cents, or 7.7 per cent, to $3.20, another all-time high for a2 Milk.
Rival Bellamy's Australia also benefited from news of strong Chinese demand, having been hammered in December and January after flagging a significant drop in sales in China due to new regulations.
Bellamy's shares gained 24 cents, or 5.2 per cent, to $4.88.
China's Ministry of Commerce announced in March a temporary relaxation of its new e-commerce regulations that would have required adequate Chinese labelling and production registration on all imports by January 1, 2018.
