CANTERBURY-BASED dairy processor Synlait Milk has more than doubled its full-year profit, beating its prospectus forecast. Profit was $NZ11.5 million ($A10.32 million) in the year ended July 31, from $NZ4.4m a year earlier, the company said in a statement on Tuesday. Sales rose about 12 per cent to $NZ420m, which Synlait said was driven by increased volumes. Synlait, which is 39 per cent owned by China's Bright Dairy, raised $NZ75m of new capital in its initial public offering, using the funds to repay debt and build a new lactoferrin plant. It has capital spending plans of $NZ186m to expand its facilities by May 2015. It has added customers including A2 Corp, which is also targeting the Chinese market, and lured milk suppliers including listed farming group Rural Equities, which now sells a third of its production to the dairy company. Profit in the latest year exceeded the $10.8m forecast in its prospectus even as sales came in about $6.4m below forecast, reflecting lower-than-expected infant formula revenue. It attributed the miss to stricter Chinese regulations. However, managing director John Penno says the company is confident it will meet its long-term targets in the infant formula and nutritionals market. Revenue from its infant and nutritionals products rose about 78 per cent to $NZ43.5m, below its forecast of $NZ52.9m. Its gross margin jumped to 65.1 per cent from 46 per cent a year earlier and compares with its forecast of 64.6 per cent. The company collected 46.8 million kilograms of milk solids in 2013, up from 44 million kg MS a year earlier. Manufactured volumes rose to 91,229 metric tonnes from 81,398 metric tonnes. It isn't expecting to pay a dividend in 2013 or 2014 as it invested for growth. Earlier this month the company lifted its forecast milk payment for 2014 to $NZ8 per kg MS, from a previous forecast of $NZ7/kgms.