Players in the baby formula space have been going gangbusters for some time now and New Zealand-based dairy processing company Synlait Milk Ltd (ASX: SM1) is no exception.
Shares in Synlait Milk are at a 52-week high – up to $9.01 at the time of writing – a 172% rise from its $3.30 share price at this time last year.
Synlait announced last week it had secured a multi-year supply agreement to double the lactoferrin manufacturing capacity at its plant near Christchurch off the back of growing global demand for its infant formula products.
Synlait reported a first-half profit of $40.7 million – quadrupling its gain from the previous corresponding period as its relationship with A2 Milk Company Ltd (ASX: A2M) continues to strengthen.
While emerging small cap Jatenergy Ltd (ASX: JAT) begins to tussle for market share in the space it will be some time before any of the smaller players get close to Bellamy's Australia Ltd's (ASX: BAL) and A2 Milk's status.
Bubs Australia Ltd (ASX: BUB) is still trundling along in the sector, with share prices up 0.6% today to 81c per share.
