Synlait's chief executive John Penno said the growth trajectory of canned infant formula had continued and total packaged volumes almost tripled from a year ago and were up 36% on the second half of last year.
''Our relationship with The a2 Milk Company continues to strengthen, where we remain their exclusive manufacturer for the important Australia, New Zealand and China market,'' Mr Penno said in a statement.
Synlait shares, which are up more than 115% on a year ago, traded up 13.6% to $9.19 following yesterday's announcement.
For the six months trading to January, Synlait had invested $34.5million in capital expenditure around the country.
Mr Penno said the major components were the Synlait Auckland blending and canning facility ($11.2million), a new wetmix kitchen at Synlait Dunsandel ($18.4 million) and also establishment of a new research and development centre in Palmerston North.
''these projects are critical for keeping up with customer demand, and give us the ability to expand on our infant formula business,'' Mr Penno said.
Craigs Investment partners broker Chris Timms said the first-half result was ''strong'' and ahead of expectations.
''The key variance was an improved overall gross margin,'' he said.
The benefits included from an improved product mix and also higher utilisation through infant formula blending and canning, Mr Timms said.
Forsyth Barr broker Damian Foster said the record profit was widely expected.
''But the market reacted quite positively to the full year 2019 guidance of ongoing growth in earnings and infant formula volumes, shaking off previous investor concerns around the recent tie-up between A2 and Fonterra,'' he said.
He noted Synlait was also seeking to expand its Chinese footprint, recently negotiating new supply agreements with Bright Dairy and New Hope Nutritional, with pending product registrations.
Synlait's cash flow of $204.3million for the year to January had fully funded Synlait's capital expenditure programme, while total net debt of $147million last year was reduced to $49.7million.
Synlait's Chairman, Graeme Milne said the debt level left the company well placed to fund its expansion plans.
At Synlait Dunsandel, he expected to spend $125million on an advanced liquid dairy packaging facility, and at Synlait Pokeno, to spend $260million establishing a new nutritional powder manufacturing facility, Mr Milne said in a statement.
Synlait's research and development spend had grown from $2.25million in full year 2016 to $4.75million in full year 2017 and is forecast at $7million in full year 2018.
