BOULDER, Colo.–The a2 Milk Company, a dairy nutrition company helping people live better lives through the benefits of the A2 protein, has officially released earnings for the half year ending December 31, 2019. The company has made substantial gains in revenue and earnings, with strong performances in key product segments of infant nutrition and liquid milk, across core markets with a total revenue of 806.7 million New Zealand dollars, an increase of 31.6%. EBITDA of the company for the same period was NZ$263.2 million, representing an increase of 20.5% versus the prior comparable period with an EBITDA to sales margin of 32.6%.
U.S. revenue more than doubled compared to the prior corresponding period, up to NZ$28 million and representing a growth of 116%. We continue to gain momentum as we execute on our strategy in the U.S., building towards an initial milestone of US$100 million of annualized sales. Our sales performance was driven by improved in-store productivity, as well as by expanding our distribution footprint. Distribution grew from 13,100 stores to 17,500 stores at the end of June 2019.
“We are pleased that the U.S. sales performance was driven by a combination of strong gains in awareness, distribution, and velocity at store level indicating the strength of the brand proposition for U.S. consumers,” said Blake Waltrip, CEO USA. “Our half year results are very encouraging and further solidify the a2 Milk Company as a pioneer within the American milk market.”
Operational highlights in the half included strong performance in Costco, increasing same store velocities in Walmart, increased penetration within Kroger through achieving national coverage, bringing the brand to shelf in Safeway in the Pacific Northwest, and new distribution points in Target, Giant Eagle, and Fresh Thymes.
Leveraging the consumer and channel insights obtained through a strategic review completed in 2019, the U.S. introduced new packaging and launched a new TV advertising campaign, both of which received positive feedback from the retail trade and are assisting in building brand awareness. The company also improved in-store presence to convert awareness to trial. All of these changes have contributed to increasing consumer takeaway.
In July, the company launched a2 Milk® Coffee Creamers, which have been received positively and are performing to plan. As consumer demand for our products build, and our distribution footprint strengthens, we expect that opportunities to launch additional new products will emerge.
The a2 Milk Company works with local U.S. dairy farmers to identify cows that naturally only produce the A2 protein type and process their milk separately, making it possible for those with sensitivities to enjoy 100% real, cows’ milk. Consumers can now find a2 Milk® at conventional and natural stores nationwide, including select Costco, Walmart, Albertsons/Safeway, Kroger, Publix, Ahold, Sprouts Farmers Market, Whole Foods Market and more.
For more information on The a2 Milk Company, its products and location availability, please visit a2milk.com or follow on social at @a2milkusa.
About The a2 Milk Company
The a2 Milk Company was founded in 2000 in New Zealand by Dr. Corran McLachlan after a scientific research showed that proteins in milk affect people differently. a2 Milk® comes from cows that naturally produce only the A2 protein. Published research suggests a2 Milk® may help avoid stomach discomfort. a2 Milk® products include Whole, 2% Reduced Fat, Chocolate 2% Reduced Fat, Fat Free, Sweet Cream Coffee Creamer, and Creamy Vanilla Coffee Creamer. For more information on the a2 Milk Company, its products, and location availability, please visit a2milk.com.
