Canterbury-based Synlait Milk said its net profit for the year to July more than tripled to a record $34.4 million, boosted by a near four-fold increase in canned infant formula volumes and growth in powder and cream product volumes.

The NZX-listed company also announced a rights issue aimed at raising $98 million to fund future growth.

Chief executive John Penno said the company, which already supplies four of the world's five largest infant formula companies, aimed to become a world leader in infant formula in its own right.

A long-term agreement with The a2 Milk Company, announced in August 2016, provided certainty around the supply of a2 Platinum infant formula over the next five years, he said in a statement.


Synlait revised its 2016/17 forecast milk price from $4.50 kg to $5.00 kg following recent improvements in dairy commodity prices.

The company confirmed a total milk price of $4.02 kg of milksolids for the 2015/2016 season, consisting of a $3.91 kg base milk price and an average of $0.11 kg for special milk and seasonal premiums.