The a2 Milk Company delivered FY26 revenue growth of 12.4% to $1,974.9 million, achieving double-digit expansion across all markets despite material supply chain disruption in the fourth quarter. The company managed a 5 percent increase in Infant Milk Formula sales within a flat China market, a 42 percent surge in Other Nutritionals driven by new product innovation, and 22 percent growth in Liquid Milk through market share gains in ANZ and USA. This balanced performance demonstrates both the strength of the company’s brand and product innovation strategy, as well as management’s ability to navigate operational challenges.
The regional breakdown reveals where the company is gaining traction. China and Other Asia segment revenue rose 11.2 percent, while ANZ grew 10.2 percent and USA accelerated sharply with 28.6 percent growth. The diversification across geographies and within product categories suggests the company is reducing its historical dependence on China Infant Milk Formula alone. New products introduced in recent years now account for over 50 percent of sales growth, indicating that innovation is becoming a material contributor to the top line and supporting the company’s mid-single-digit growth guidance for FY27.
On the bottom line, underlying EBITDA increased 5.4 percent to $284.4 million, while underlying net profit after tax rose 7.0 percent, producing underlying earnings per share of 32.5 cents. The company declared a $300 million special dividend and raised its ordinary dividend by 5 percent to 21 cents per share with a 74 percent payout ratio, signaling confidence in cash generation and the balance sheet. Closing cash of $784.5 million supports both near-term capital allocation and the ongoing supply chain transformation initiatives, including the earlier-year divestment of Mataura Valley Milk and acquisition of a2 Pōkeno.
The standout concern is the 4Q26 supply chain disruption that created temporary shortfalls in a2 IMF availability in China. The company attributes this to strong prior-quarter demand, air and sea freight constraints, production backlogs at contract manufacturer Synlait, extended testing protocols, and additional customs clearance requirements. Management flagged recovery actions underway and significant new product launches planned for the first half of FY27 across IMF, Other Nutritionals and Liquid Milk. Investors should monitor the pace at which supply chain normalization translates back to financial performance and whether the guidance of approximately 15 percent EBITDA margin is achieved as the company executes its transition initiatives.
This announcement is price sensitive and has been flagged as material by the ASX.
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About The a2 Milk Company Limited (ASX: A2M)
The a2 Milk Company Limited is a dairy nutritionals company that sells A2-type protein branded milk and related products, including infant milk formula and other dairy products. The company operates across Australia, New Zealand, China, rest of Asia, and the United States, manufacturing and selling nutritional products and providing licensing services under the a2 Milk and a2 Platinum brands.
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