The international company, which reported a half-yearly profit of NZ$178million, purchased the land and buildings from Kyvalley Dairy Group in September last year.
The a2 Milk Company acquired the Kyabram factory for a total cost of NZ$16.3million.
Under the agreement, the Kyvalley company will continue to operate the leased facility with a long-term supply agreement, and the a2 group will undertake a future expansion and upgrade of the facility, subsidised by increased rent.
Kyvalley Dairy has been a foundation supplier to The a2 Milk Company since 2003, supplying about 55 per cent of the a2 raw milk, and packing 100 per cent of a2 milk products sold in Victoria, South Australia and Tasmania.
In its half-yearly report, the company disclosed it had suffered a revenue decline and a 32 per cent profit decline for the first half of the financial year.
But the company is assuring investors its fundamentals remain strong.
The company’s performance was influenced by COVID-19 disruption to the informal sales channels into China.
Sales into China of labelled infant nutrition products increased by 45 per cent to NZ$213million.
The company reported no debt and a closing cash position of NZ$774million, slightly lower than June 2020, affected by a capital raising move and the acquisition of the Kyvalley milk processing factory.
The a2 Milk Company is forecasting NZ$1.4billion revenue for the full financial year.
The company’s new managing director, David Bortolussi, started in the role in February and will be based in Sydney.
He starts with a base salary of NZ$1.75million.
Mr Bortolussi succeeds Geoffrey Babidge who has been in the CEO role on an interim basis since December 2019.
The company processes a range of fresh and powdered milk from cows that only produce the A2 protein.
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