Posting top line growth of 41%, and a net profit gain of over 55%, it's easy to forget that this is a company that sells milk!

Moreover, the business has sustained high double digit growth rates since listing and shows little signs of slowing down. No wonder shares extended gains to carve out fresh record highs this past week.

With shares trading on a PE (pro-rata) of 34 it could seem expensive, but they are getting good traction in direct Chinese sales and are seeing encouraging early signs in the (huge) US market. The Australian market remains super strong.

If they crack the US and maintain their position as a premium brand amongst Chinese and Australian consumers, the current price represents a bargain.

Personally, I am mindful of the fickle nature of consumer preferences, and have serious doubts as to the espoused health benefits (as does the scientific community). Blackmores is a good example as to how things can go wrong if there's a misstep or two.

With others such as Nestle now in this space, I'm concerned competitive pressures could crimp margins in the years ahead too.

At the same time, management have executed extremely well, there is huge sales momentum, the brand is very strong and scientific objectivity has never stood in the way of consumer preferences before. 

The too hard basket for me, but congratulations to all shareholders.

Results announcement can be read here