Covid-19 lockdowns drove customers to stock up on a2's formula in the third quarter of its financial year to June 30, but under the heading "current observations", a2 Milk said there had been an "unwind" of pantry stocking in the early part of the current year.
The company said softness in retail daigou trade was continuing due to reduced tourism from China and lower international student numbers.
It also said it had seen some disruption in the corporate daigou/reseller channel resulting from the stage 4 lockdown in Victoria, which has been the hardest hit by Covid-19 of all the Australian states.
In August, a2 Milk said its net profit hit a record $385.8 million in the June year, driven by a 34 per cent lift in infant formula sales.
The result was broadly in line with market expectations but slightly lower than market consensus in terms of revenue.
The company last month confirmed that it is engaged in discussions with Mataura Valley Milk, a New Zealand dairy nutrition business, to take a 75 per cent stake in the company for $270m.
In its result, a2 Milk said there continued to be uncertainty resulting from Covid-19, and the potential for moderation of economic activity.
This could impact consumer behaviour "in our core markets", as well as participants within the supply chain, most notably in China, it said.
"Notwithstanding these uncertainties, overall for 2021, we anticipate continued strong revenue growth supported by our continued investment in marketing and organisational capability," it said.
A2 Milk - New Zealand's second biggest company by market capitalisation - has appointed David Bortolussi to the role of managing director and CEO based in Sydney.
He will replace Geoff Babidge, who has been acting chief executive, effective from early 2021.
Shares in a2 Milk last traded at $17.95, down 33c or 1.8 per cent, while the market
overall was down 1.2 per cent.
