The dairy company reported revenue growth of 18.6% ($783.3m) and net profit after tax of $68.5m.

Its earnings attributable to shareholders came to $73.8m.

A2 Milk chief executive and managing director David Bortolussi said the outlook for 2023 was positive, with low double-digit revenue growth expected.

However, the Chinese infant formula market would remain challenging.

Sales of a2 Platinum infant formula in China were up 18.6%, versus a 12.5% decline across the entire infant formula market in the country.

“The company expects the increasingly challenging China infant formula market dynamics to continue due to fewer births in calendar 2022 and the rolling impact from fewer births in prior years on later stage infant formula products,” Bortolussi said.

“It is also expected that the English label market will continue to be impacted by the evolving channel dynamics and a further shift towards the China label market.”

China’s infant formula market was also expected to see some disruption with the market transitioning from current to new “GB” standards for infant formula this year.

GB standards are Chinese national standards which ensure products comply with rules on labelling, safety and usage.

“Despite these challenges, the Company is continuing to deliver against its refreshed growth strategy, and is expecting low double-digit revenue growth in 2023 supported by growth in China label IMF, ANZ liquid milk and USA liquid milk sales,” Bortolussi said.