In an announcement to the ASX today the a2 Milk Company Ltd (ASX: A2M) announced a financial update ahead of its 2018 financial year (FY18) results release.

a2 Milk Company is the name behind the popular a2-only protein milk and infant formula products. In the growing infant formula market, it competes with Bellamy’s Australia Ltd (ASX: BAL), Nestle, Blackmores Limited (ASX: BKL) and Aptimil.

Financial Update

For the year to June 30th 2018, a2 Milk Company said unaudited revenue totalled $922 million, up 68% on the year earlier. The dairy and infant formula business expects its EBITDA to sales ratio to equal 30%.

Looking towards FY19, a2 Milk Company anticipates more revenue growth, particularly for sales of its nutritional products, alongside an increased marketing budget in China and the USA.

Despite the increased spend, however, a2 Milk Company said its EBITDA to sales ratio, “is assumed to be broadly consistent with the Company’s expectations for FY18.” Earlier this month, a2 Milk Company announced Jayne Hrdlicka of Jetstar will become the new CEO within the month.

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