By Digifin Pty Ltd · About this coverage
Key Points
- Group revenue NZ$1,974.9m, up 12.4%, on a continuing operations basis excluding Mataura Valley Milk
- EBITDA NZ$284.4m with underlying EBITDA up 5.4%; NPAT NZ$207.5m with underlying NPAT up 7.0%
- Other Nutritionals up 42% excluding a2 Pokeno ingredient sales of NZ$23.8m; IMF up 5%; Liquid Milk up 22%
- NZ$300m special dividend; ordinary dividends lifted from NZ20.0cps to NZ21.0cps, unimputed and fully franked
- FY27 outlook of mid single digit percent revenue growth and approximately 15% EBITDA margin
About a2 Milk (ASX:A2M)
The a2 Milk Company Limited is a dairy nutrition company headquartered in Auckland, with its securities quoted on the ASX under the code A2M and on the NZX. It markets infant milk formula, liquid milk and other nutritional products made from milk containing only the A2 beta-casein protein type. Its main markets are China and other parts of Asia, Australia and New Zealand, and the United States.
The a2 Milk (ASX:A2M) Company reported FY26 group revenue of NZ$1,974.9 million, up 12.4%, for the year ended 30 June 2026. The company states that all figures are in New Zealand dollars and that financials are presented on a continuing operations basis that excludes Mataura Valley Milk. EBITDA was NZ$284.4 million, with underlying EBITDA up 5.4%, and net profit after tax was NZ$207.5 million, with underlying NPAT up 7.0%. Basic earnings per share were NZ 28.6 cents and underlying earnings per share rose 6.8% to NZ 32.5 cents. Underlying results exclude a2 Pokeno losses, which the company said reflect temporarily low production volumes ahead of the a2 Platinum transition in 1H27, and one-off transformation costs associated with the transaction, separation, integration and transition; a2 Pokeno recorded an FY26 EBITDA loss of NZ$23.2 million and an NPAT loss of NZ$28.3 million. Closing cash was NZ$784.5 million with operating cash conversion of 68%, defined as net cash flow from operating activities before interest and tax divided by EBITDA.
By segment, China and Other Asia revenue rose 11.2%, ANZ 10.2% and the USA 28.6%. Infant Milk Formula revenue grew 5% in what the company described as a flat China IMF market, Other Nutritionals grew 42% excluding FY26 a2 Pokeno external ingredient sales of NZ$23.8 million, and Liquid Milk grew 22% on market share gains in ANZ and the USA. a2 Milk said it managed supply chain disruption in 4Q26 that had a material impact on China label IMF product availability, performance and supply chain costs and that affected 2H26 group sales and earnings, with recovery actions under way; the company attributes the disruption to strong demand in the preceding quarter, air and sea freight constraints, a Synlait production backlog, extended product release times due to enhanced testing, and additional customs clearance requirements and testing measures. Managing Director and Chief Executive David Bortolussi said the key contributing factors to the China label product availability issues have been resolved and that the company is focused on executing its recovery plan. a2 Milk declared a NZ$300 million special dividend and lifted total full year ordinary dividends from NZ 20.0 cents to NZ 21.0 cents per share, unimputed and fully franked, with the company citing a payout ratio of about 74%. For FY27 it expects mid single digit percent revenue growth and an EBITDA margin of approximately 15%.
Source: The a2 Milk Company Limited (ASX:A2M), 17 August 2026. Summary content supplied by Digifin Pty Ltd.
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