A2 Milk, the New Zealand dairy company which sells dairy products made from milk containing only the A2 protein, reported pre-tax profits of NZ$125m (€75m) for the first quarter of its 2019 financial year, a 60% increase on the same period last year.

The company recorded first-quarter sales of NZ$368m (€221m), a 41% increase on last year. This was driven by increased sales distribution in China and the US.

A2 is extremely profitable, with earnings (EBITDA) for the quarter increasing 58% year on year to reach NZ$124m, as profit margins widened from 30% in the first quarter of 2018 to a very strong 33.7% this year.

A2 Milk was founded in 2000 by New Zealand researcher Dr Corran McLachlan. Research has shown that milk containing just the A2 protein is easier on digestion and can be consumed by people with lactose intolerance.

The company has built an entire portfolio of dairy products around the A2 brand, including liquid milk, milk powders and infant formula.

The brand is well established in New Zealand and Australia but sales are growing rapidly in China and other Asian markets. A2 now controls a near 6% share of the $30bn Chinese infant formula market.

The company also sells liquid milk in the UK and the US, where it now has distribution to over 9,000 stores.

In February this year, New Zealand dairy giant Fonterra signed a strategic partnership with A2 Milk to secure a dedicated pool of milk containing only the A2 protein.