By Stephen Wright 



  WELLINGTON, New Zealand--A2 Milk Company Ltd. said it's giving more priority to investing in growth than returning capital to shareholders after reporting a jump in earnings and cash reserves of 854 million New Zealand dollars ($564 million). 


  The infant formula and fresh milk company's net profit for the 12 months ended June 30 was NZ$385.8 million, up 34.1% from the previous year, due to strong demand in China, it said Wednesday. Revenue rose 32.8% to NZ$1.73 billion. 


  A2 Milk, which over two decades has transformed from a fringe producer to one of New Zealand's largest listed companies, said it is evaluating investments in manufacturing facilities. 


  "As part of the board's ongoing review of the most appropriate use of capital for the business, we continue to prioritise investment in growth initiatives ahead of returning capital to shareholders," it said in a statement. 


  The company's profit margin for the year was 31.7%. It had forecast revenue of NZ$1.7 billion to NZ$1.75 billion and a profit margin of 31% to 32%. 


  A2 Milk said it expects a profit margin of 30% to 31% for its current financial year and reiterated that it's targeting a 30% profit margin for the medium-term. 


  Write to Stephen Wright at stephen.wright@wsj.com