A2 Corp Ltd is transferring its head office to Australia so it can build its business there after posting an overall interim loss.
A2 licenses intellectual property that enables the identification of cattle producing A2 milk and receives royalty income from sales of the milk.
The company thismonth reported a $1.99 million loss in the six months to September 30, reduced from the $2.07m loss reported last year.
Its revenue in the six months to September 30 was just $217,655, comprising royalties and management fees, down from $1.49m last year when a one-off fee of $1.45m was received for the A2 Dairy Products (A2DP) joint venture in Australia.
The company said today that it was implementing a strategic market review following the half-year result in which Australian sales increased 260 per cent.
"The board has decided that the strategic review will include a restructuring proposal where Australia will be one of the key drivers of A2C's business operations as part of endeavouring to make the business fully profitable by the end of 2009," chairman Cliff Cook said.
The A2C head office is transferring from Auckland to Australia to ensure management focus is on this key market, but the registered office, treasury and company secretarial responsibilities will stay in New Zealand.
Australia was currently the largest market worldwide for A2 milk, the company said in its interim report.
A2 milk is sold in Australia via A2DP, a joint venture owned by A2 Corp by Freedom Nutritional Products.
The venture sold more than 800,000 litres of A2 milk on average each month since April in Australia.
