WELLINGTON, New Zealand--Milk marketing company a2 Milk Ltd. says the coronavirus pandemic has temporarily boosted its profit margins.
Panic buying of milk products, particularly infant formula, a lower New Zealand dollar and reduced operating costs because of travel restrictions have lifted earnings, the company said Wednesday.
It forecast full-year revenue in a range of 1.7 billion New Zealand dollars ($1 billion) to NZ$1.75 billion and a profit margin of 31%-32%, higher than previously indicated.
A fall in the New Zealand dollar had boosted the value of U.S. dollar-denominated China sales while costs are lower due to reduced travel and delays in hiring staff, a2 Milk said.
"It's unlikely that these factors will be sustained as these unprecedented circumstances begin to unwind," the company said.
It is continuing to target a profit margin of 30% in the medium term.
Write to Stephen Wright at firstname.lastname@example.org