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Premium-branded dairy company a2 Milk (ASX:A2M) released its FY22 results today that have impressed investors. For the year, A2 Milk reported results in-line with the Company’s expectations including revenue growth just under 20%, EBITDA up 59%, NPAT grew 42.3% to NZD$114.7 million and closing net cash was NZD$816.5 million.

The strong results were driven by strong performance across the company’s regions and products including China label IMF sales up 12.2%, English label IMF sales up 11.6% and USA liquid milk sales surged 30.2%.

A2 Milk also announced its intentions to execute an on-market share buyback of up to NZD$150 million as a result of strong results and a strong balance sheet position at the end of FY22.

On the forecast front, A2 Milk expects high single digit revenue growth in FY23, especially across its China label IMF, English label IMF and USA liquid milk, while Australia and New Zealand liquid milk is expected to be broadly in-line with FY22 and MVM down compared to FY22 annualised.

Macquarie has maintained its underperform rating and price target of $4.64 per share on A2 Milk pending further examination of the results, but the broker did acknowledge that the share buyback announcement is underpinned by the stronger-than-forecast net cash position of $816.5 million.

Investors on the other hand are seemingly very impressed with the dairy company’s results, with A2 Milk shares trading almost 10% higher this afternoon.