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The a2 Milk Company Limited (ASX:A2M)

ALERT: Price-sensitive ASX Announcement for A2M
Current share price for A2M : $6.670 -0.08 (-1.19%)+
Announcement
Release
17 Aug 2026 7:30AM
Price at Release
$6.750
Full Release
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Summary
The a2 Milk Company Limited reported a 12.4% increase in revenue for FY26, reaching $1,974.9 million. This growth was primarily driven by the English label Infant Milk Formula (IMF), Other Nutritionals, and Liquid Milk, despite a decline in China label IMF sales due to supply chain disruptions that have since been resolved. The ANZ and USA segments saw notable revenue increases of 10.2% and 28.6% respectively. Marketing investments were increased, particularly in China, to support growth strategies. The EBITDA decreased by 2.5% but the underlying EBITDA rose by 5.4%. Net profit after tax from continuing operations fell by 5.8%. Challenges included significant losses from the a2 Pōkeno facility due to low production volumes and transition costs. The company declared a final dividend of 9.5 cents per share and a special dividend of 41.3 cents per share. Looking ahead to FY27, the company expects revenue growth supported by product innovation and a gradual recovery in China IMF sales.
Key Points
  • FY26 revenue grew 12.4% to $1,974.9 million, driven by growth in English label IMF, Other Nutritionals, and Liquid Milk.
  • Supply chain disruptions in 4Q26 affected China label IMF sales, but these issues have been resolved.
  • ANZ segment revenue increased by 10.2%, mostly due to the growth of Australian liquid milk.
  • USA segment revenue rose by 28.6% due to increased sales of core and grassfed liquid milk.
  • Marketing investments were up to support growth strategies, particularly in China.
  • EBITDA was down 2.5% to $284.4 million, with underlying EBITDA up 5.4% to $307.6 million.
  • Net profit after tax from continuing operations decreased by 5.8% to $207.5 million.
  • a2 Pokeno experienced losses due to low production volumes and transition costs.
  • The company declared a final dividend of 9.5 cents per share and a special dividend of 41.3 cents per share.
  • FY27 outlook includes expected revenue growth, continued product innovation, and recovery in China IMF sales.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.