Freedom Foods will accelerate its roll-out of breakfast cereals and dairy products in China to feed a market hungry for Australian health foods.
The Sydney-based company, which has sold toddler milk on Chinese websites since 2015, is expanding its dairy range to include infant formula and infant cereals under its Australia's Own label.
An Australia's Own infant formula product will launch in 2017, and the company will also fast-track a line of cluster and oat porridge products for Chinese consumers.
"The market for oat-based cereal products in China ... is expected to grow at a fast pace, driven by demand for better quality oats," the company said as it reported its first half earnings on Monday.
Freedom follows several other Australian food companies whose profits have soared on overseas sales in China, including Blackmores, Bellamy's and A2 Milk.
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Its labels include Australia's Own, Freedom Foods, Arnold's Farm, So Natural and Vitalife which are branded as nut-free, allergen-free, non-genetically modified ranges.
Freedom revealed a half year operating net profit of $4.2 million on Monday, up 35 per cent from last year's.
Its statutory net profit was $27 million, largely as a result of the $25 million gain the company made in selling its stake in New Zealand dairy producer A2 Milk.
Freedom reported strong sales growth across all its cereal, snacks, dairy and non-dairy beverage and seafood items, for the six months to December 31, with revenue jumping 21 per cent to $54.1 million.
The popularity of almond milk among consumers also reaped returns for the company, which is the biggest supplier of the drink in Australia.
Sales of the fashionable milk alternative burgeoned, overtaking soy as the company's largest non-dairy drink.
However returns from the business were affected by a $1.5 million cost in sourcing almonds globally.
The low Aussie dollar also hit the company's North American business, which saw sales grow but its losses blow out to $505,000.
The unfavourable exchange rate also affected its sourcing of salmon and sardines for its speciality Brunswick sardines range.
The company predicted higher profits in 2016 and is planning to upgrade some of its manufacturing facilities to help boost production.
Freedom's shares closed 24 cents lower at $3.71.
FREEDOM TO FEED CHINA
* Revenue up 21pct to $54.1m
* Net profit down 57.6pct to $23.4m
* Interim dividend fully franked at 1.75 cents, up from 1.5 cents.
