From the Australian;
A2 Milk upgrades revenue outlook for the second half of the year as international borders reopen and it gains traction across key market channels in China.
But the trans-Tasman dairy company cautions an improvement across its top line will not translate to stronger earnings as it spends a record $NZ220m on a marketing spree mainly focused in China. It is also yet to pay a dividend.
A2's net profit is down more than 53 per cent to $NZ56.1m in the six months to December 31, citing Covid travel restrictions and excess inventory.
Revenue is 2.5 per cent lower at $NZ660.5m.
"Despite challenging market conditions in China and COVID-19 volatility, we are making good progress stabilising the business,” chief executive David Bortolussi says.
“Our first half result is in line with expectations, placing the company in a strong position to continue executing our strategy and deliver revenue growth in FY22.
"Our sales outlook for FY22 has improved but is not expected to translate into higher earnings as we significantly increase brand reinvestment consistent with our growth strategy.”
