New Zealand’s a2 Milk reports a 21% rise in full-year profit, reaching NZ$202.9 million, boosted by strong China demand. The company plans to acquire a manufacturing facility to expand its presence in China, targeting the NZ$23 billion China label infant milk formula market. CEO David Bortolussi anticipates similar profits in the coming year and aims for higher operating earnings margins.

a2 Milk also announces the sale of its 75% stake in Mataura Valley Milk for NZ$100 million, with plans to declare a special dividend of NZ$300 million if transactions go through. Revenue from China & Other Asia segment increases by 14%, driving overall group revenue up 13.5% to NZ$1.90 billion. The company declares a final dividend of 11.5 New Zealand cents per share.

Shares of a2 Milk surge by 6.5% to NZ$9.29, reaching their highest level since mid-March. The company’s strong performance is attributed to robust sales growth in China and strategic investments in manufacturing facilities to capitalize on the lucrative infant milk formula market.

Read more at Yahoo Finance: a2 Milk’s full-year profit jumps, company to buy NZ formula plant for China growth