With its net cash position climbing by almost $40million to $108million, maiden dividends are on the cards for shareholders at the end of its full year trading.
For its six months to December, A2Milk's revenue rose 84%, from $139million to $256million, earnings before interest, tax, depreciation and amortisation (ebitda) rose 243%, from $18.6million to $64million and after-tax profit rose 290% from $10.1million to $39.3million.
A2Milk shares rose more than 3% after the announcement, trading at $2.65.
Forsyth Barr broker Damian Foster said it was a ''superb'' first-half result and beat the brokerage's ebitda expectations by 50%.
He highlighted sales had climbed more than 84% year on year, assisted by a period where inventory was constrained and there was continued growth in demand for the A2Milk's differentiated product.
However, he also cautioned that management had indicated its marketing spend would be weighted towards the second half of the year, so yesterday's result was partially boosted by the timing of lower-than-expected costs.
Craigs Investment Partners broker Chris Timms said the result was a ''very strong close'' to first-half trading, up 10% on the brokerage's expectations on revenue and up 24% at ebitda level.
''Infant formula continues to be the key growth driver, with platinum [brand] now at a 25% share of Australian grocery/pharmacy as at January 1, compared with 16.7% a year ago,'' he said.
A2 Milk chief executive Geoffrey Babidge reiterated the company was closely monitoring the outlook of China's regulatory environment for formula, and competitor activity in other markets.
It would consequently continue to adopt a prudent approach to inventory management, Mr Babidge said.
