New Zealand-based A2 Milk Company has reported a 47% rise in profits to NZ$287.7m for its full year, driven by its infant formula products in China and Australia. Revenues increased 41% to NZ$1.3bn while infant formula sales increased 47%. The company said it now has a 6% share of the Chinese infant formula market. US milk revenue more than doubled and distribution expanded to 13,100 stores.

Despite the rise in profits, the share price closed 12% lower following the results update which returns a profit level lower than expected. Shares are up 33% over the past year.

A2 Milk sells dairy products made from milk containing only the A2 protein. The business centres on research that milk containing only A2 protein is easier on digestion and can be consumed by people who are lactose intolerant.

The company has built an entire portfolio of dairy products around the A2 brand, including liquid milk, powders and infant formula. Last year, Fonterra signed a deal with A2 Milk to secure its protein milk.