Auckland, 16 February 2011: A2 Corporation Limited ("a2C") (NZAX: ATM) has reported a maiden unaudited Group Profit after Tax of $893,517 for the six months ended 31 December 2010 – a $1.6 million turnaround from the comparable period a year ago.
Consolidated trading revenue, including subsidiaries, for the period was $19.309 million.
The latest financial result reflects the benefits from the acquisition of the 50 per cent of the Australian business a2C did not already own and implementation of a new agenda for growth.
The Chairman, Cliff Cook, stated: "a2C has undergone a transformation over the last two years from a developer of intellectual property to a producer of premium priced fast moving consumer goods and ingredients (FMCG) with a global focus. The financial results reflect this change".
In Australia, sales of a2 Milk™ fresh milk and dairy products have continued to grow rapidly through supermarket chains and independent grocery stores in the last six months. At the end of December 2010, a2 Milk™ fresh milk had achieved an estimated 3.7 per cent share of fresh milk sales by value in the grocery channel.
To meet the growing demand for a2 Milk™ fresh milk, the Company is constructing a $A7.5 million processing facility in Sydney, to be commissioned in the fourth quarter of 2011. Funding for the project has been achieved through an asset finance facility and a share placement to cornerstone shareholders, AMP Capital Investors (New Zealand) Limited and Freedom Foods Group Limited, that raised $3.9 million equity in December 2010.
· Final costs associated with the full acquisition of A2 Dairy Products Australia Pty Limited of $62,594.