A2 Milk says FY revenue up by about 68%
Shares in The A2 Milk Company have dipped in early trade despite the dual-listed New Zealand-based dairy firm revealing its full-year revenue climbed by more than two thirds.
A2 on Thursday said unaudited full-year revenue grew 68 per cent to about $NZ922 million ($A845.5 million), and tipped underlying earnings to sales ratio for the 12 months to June 30 to be about 30 per cent when it announces its results next month.
The company said the ratio is expected to remain about the same in 2018/19 despite higher expected overhead costs related to a rising headcount for China and its corporate office.
A2's ASX-listed shares, which have nearly trebled in value over the past year, fell 6.0 cents, 0.55 per cent, to $10.60 by 1050 AEST.
The company also said it expects further revenue growth in FY19, particularly from its nutritional products.
It is also planning to spend a greater portion of revenue on marketing than in FY18 to continue investing in Australia and to support its expansion in the United States.
The firm announced its expansion into the US north east in January, which it said at the time would increase its reach to potentially 5,000 retail stores in the country.
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