A2 Milk’s market capitalisation shot up by more than three quarters of a billion dollars in the first hour of trade following the company’s record first-half result.
The stock rallied by $1.07 to $13.94 after it reported a 55 per cent lift in its net profit to a record $152.7 million in the six months to December, taking the company’s market value to $10.24 billion.
A2 Milk said its profit leap was driven by continued strong sales growth in all key product segments – infant formula, liquid milk and milk powders.
Sales of infant formula totalled $495.5m for the half – an increase of 45.3 per cent on the prior year – driven by share gains in China and Australia.
The company, which markets A1 beta-free infant formula and dairy products, also saw growth in its liquid milk business of 20.2 per cent to $83.4m, particularly in its key markets of Australia and the United States.
Sales of other nutritional products grew 40.4 per cent to $34.3m, driven predominantly by milk powders and supported by new products launched towards the end of last year.