The A2 milk company has suffered a revenue decline and a 32 per cent profit decline for the first half of the financial year.
But the company still recorded a NZ$178 million profit before tax, for the first half, and the company is assuring investors its fundamentals remain strong.
The company's performance was influenced by COVID-19 disruption to the informal sales channels into China.
But sales into China of labelled infant nutrition products increased by 45 per cent to NZ$213 million.
The company reported no debt and a closing cash position of NZ$774 million, slightly lower than June 2020, affected by a capital raising move and the acquisition of the Kyvalley milk processing factory.
A2 acquired the Kyabram factory in northern Victoria for a total cost of NZ$16.3 million, including the land and buildings.
Under the agreement, the Kyvalley company will continue to operate the leased facility, with a long-term supply agreement, and the A2 Group will also undertake a future expansion and upgrade of the facility, subsidised by increased rent.
A2 is forecasting NZ$1.4 billion revenue for the full financial year.
A2's new managing director David Bortolussi started in the role in February and will be based in Sydney. He starts with a base salary of NZ$1.75 million.
Mr Bortolussi succeeds Geoffrey Babidge, who has been in the CEO role on an interim basis since December 2019.
The company processes a range of fresh and powdered milk from cows which only produce the A2 protein.