a2 milk has posted an ''outstanding'' $99million half-year after-tax profit, at the same time announcing a crucial partnership with Fonterra to source, manufacture and distribute a2 milk globally. Shares in the Dunedin-founded company, already up more than 270% on a year ago, spiked 26.5% to a record $11.75, making it the country's largest listed company by capitalisation at $8.58billion. A2 Milk managing director Geoffrey Babidge and Fonterra chief executive Theo Spierings jointly announced the partnership, linking Fonterra's global milk pool, manufacturing, marketing and distribution with a2's brand strength and capabilities. Fonterra would be looking to source more a2 milk in New Zealand and Australia, to expand a2 Milk products into ''new priority markets'' across Southeast Asia and the Middle East, plus produce and sell a2 milk across New Zealand. Craigs Investment partners broker Peter McIntyre said the partnership was a ''big U-turn'' for Fonterra, while for a2 Milk it was a ''clever strategic move'' to split a2 milk supply sources.

Source: Otago Daily Times February 21, 2018 15:56 UTC