Infant formula maker A2 Milk has declared its first-ever dividend of 8.5 cents per share after reporting a strong financial performance, driven by robust English label sales.
The company posted a net profit of $91.7 million, up from $85.3 million, and revenue of $893.8 million, surpassing expectations and sending its share price soaring nearly 18 percent.
Despite supply constraints in the China label market, English label sales grew by 13 percent, contributing to a 7.2 percent increase in overall infant milk formula sales.
The company also noted a slight rebound in China’s birth rates, which it attributed to delayed Covid-related pregnancies and the Year of the Dragon.
Looking ahead, A2 Milk expects double-digit revenue growth, improved gross margins, and rising marketing investments while reducing administrative costs.
