[20 November/NZ Herald]

The a2 Milk Company said its net profit has increased by 64.5 per cent to $86 million in the first four months of the new financial year, compared with the corresponding period last year, and that it was well prepared for any cross-border regulation changes in China. The dual-listed alternative milk company, said in a trading update that revenue came to $368.4m, up 40.5 per cent over the same period last year. The company’s earnings before interest, tax and amortisation came to $124.9 million, up 60 per cent. In speech notes issued before the meeting, chief executive and managing director Jayne Hrdlicka said the company had a well-managed “daigou” unofficial trading network and had been anticipating rule changes governing the trade for some time. Potential difficulty on the China regulation front has troubled a2 Milk’s share price from time to time, but Ms Hrdlicka said the company continued to believe that the regulatory outlook was positive. As a part of the new e-commerce rules, January 1, 2019, will see the implementation of tighter compliance to tax rules for all goods through cross-border and daigou channels.