FILE PHOTO: A2 milk is seen on a supermarket shelf in Singapore April 16, 2018. Picture taken April 16, 2018. REUTERS/Thomas White/File photo

(Reuters) -New Zealand's a2 Milk reported a 21% jump in its full-year profit on Monday helped by strong China demand, and announced the acquisition of a manufacturing facility to expand its share in China.

The infant milk formula maker reported full-year post-tax net profit attributable of NZ$202.9 million ($120.12 million), compared with last year's NZ$167.6 million and slightly ahead of the Visible Alpha consensus of NZ$202.2 million.

That was largely on the back of strong demand for its infant milk formula products in China, its top market. Total IMF sales rose 10%, driven by a robust 17% growth in its English label offerings, while China label sales grew 3.3%.

"It has been an exceptional year for our infant milk formula business," said CEO David Bortolussi.

In the ongoing financial year, the company expects net profit to be similar to fiscal 2025, while operating earnings margins are expected to be between 15% and 16%, higher than 14.4% reported in 2025.

a2 Milk also said it will buy a nutritional manufacturing facility in New Zealand for NZ$282 million from a unit of China Mengniu Dairy . The facility already has two existing China label product registrations, which will help a2 Milk bolster its penetration in its top market.

The acquisition "secures opportunity for greater market access to the attractive NZ$23 billion CL (China label) IMF registered market," the company said.

The Auckland-based company will also divest its 75% stake in Mataura Valley Milk for around NZ$100 million, booking a loss of NZ$130 million on the divestment.

If the two transactions go through, a2 Milk plans to declare a special, fully-franked dividend of NZ$300 million.

Its revenue from the China & Other Asia segment, its top money-making division, jumped around 14% to NZ$1.30 billion. That drove its group revenue 13.5% higher to NZ$1.90 billion.

a2 Milk declared a final ordinary dividend of 11.5 New Zealand cents per share.

Shares of the company rose as much as 6.5% to NZ$9.29, its strongest level since mid-March, as of 2251 GMT.

($1 = 1.6892 New Zealand dollars)

(Reporting by Sneha Kumar and Kumar Tanishk in Bengaluru; Editing by Chris Reese)