(Reuters) -New Zealand's a2 Milk Co ( ACOPF ) reported a 21.1% rise in its full-year profit on Monday, driven by strong performance of its infant milk formula in its top market China.

The infant formula maker's net profit after tax attributable came in at NZ$202.9 million ($120.12 million) for the year ended June 30, up from NZ$167.6 million a year ago and marginally beating the Visible Alpha consensus of NZ$202.2 million.

Effective marketing campaigns in China, even as it faces a decline in birth rates, along with improved brand health metrics drove a 12.4% jump in infant formula sales led by sales momentum in English-label products.

Infant milk formula sales from China and other Asian markets, its largest revenue source, jumped nearly 14% to NZ$1.3 billion for the year.

The firm declared a final dividend of 11.5 New Zealand cents per share.

The company also said it has decided to acquire Yashili New Zealand, a manufacturing facility in Pokeno with two existing China-label product registrations, and has plans to divest Mataura Valley Milk.

The board intends to declare a special dividend of NZ$300 million following the incorporation of the new China-label products and completion of the divestment.

($1 = 1.6892 New Zealand dollars)