By LIAM DANN
A2 Corporation will be profitable by the end of the 2005/06 financial year, chief executive Andrew Clarke told shareholders at the annual meeting in Auckland yesterday.
He said revenue was expected to grow rapidly over the next few years while there was no obvious reason to expect large increases
in expenses.
The tiny company, listed on the NZAX, owns technology that enables the production of an alternative variety of milk containing just A2 proteins.
The company claims its milk may offer health benefits in relation to diabetes and disorders like autism.
A2 Corporation has opted not to become a producer of the milk product and has instead concentrated on developing licensing agreements with health companies around the world.
The company will not get involved in the expensive process of marketing and distributing the product offshore.
Clarke said the company had made strong progress in Australia and the US in the past year.
The company now had an agreement in place with US company IdeaSphere which will provide it with guaranteed royalties.
The next step was to sell licences for the milk in Asia and Europe.
A2 reported a pre-tax loss of $2.16 million for the year to March 31, 2004.
Last year, revenues increased 300 per cent to $400,000.
