New Zealand’s A2 Milk Co. is optimistic it will reach its NZ$2bn ($1.2bn) sales revenue target this year ahead of schedule.
Reflecting a “strong performance across all segments and product categories” in the first half of A2 Milk’s fiscal 2026, the company has raised its revenue outlook for the full year to mid double-digit growth.
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In November, the infant-formula and fresh-milk producer had guided to a low-double-digit print.
Announcing six-month results to the end of December today (16 February), CEO and managing director David Bortolussi said the medium-term sales target will be realised a year ahead of plan.
Growth in the half was led by the US and the China/Asia region of 29% and 20.3%, respectively, with Australia and New Zealand lagging behind at 8.6%.
“We continue to execute our growth strategy with a focus on maximising opportunities in China infant-milk formula,” Bortolussi said.
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By GlobalDataHe added: “Infant-milk formula remains central to our growth strategy and continues to outperform the China market, delivering 13.6% year-on-year revenue growth.
“Our liquid-milk businesses continue to perform exceptionally well in Australia and the US, with both achieving double-digit revenue growth as more consumers embrace the benefits of A2 milk.”
A2 Milk’s shares rallied 5% in New Zealand today to close at NZ$10.50, taking gains over the past 12 months to 34%.
Group revenue rose 18.8% to NZ$993.5m. EBITDA climbed 18.4% to NZ$155m and underlying EBITDA increased 25.9%.
A2 Milk, which is listed in Australia and New Zealand, reported an EBITDA margin of 15.6%, flat with the prior year. That metric is forecast to end 2026 at 15.5% to 16%.
Net profit after tax rose 9.4% to NZ$112.1m, while basic earnings per share climbed 9.2% to 15.5 cents.
By product category, infant-formula sales rose 13.6%, with a 20.9% increase in English-label baby powders and 6.5% in China labels.
Liquid milk sales grew 18.5%, including growth of 29.3% in the US and 11.9% in Australia and New Zealand.
A2 Milk said the China and Asia segment contributed NZ$739m in revenues, helped by a 14.5% increase in formula.
In the US, revenue reached NZ$83.2m. The company said the new US dietary guidelines issued in January are “an opportunity for category expansion and supports future growth”.
Australia and New Zealand recorded revenue of NZ$171.3m.
Announcing its previous fiscal 2025 results in August, A2 Milk revealed it was buying an infant-formula business in New Zealand and would invest NZ$100m to increase capacity.
It said it was acquiring a Yashili New Zealand Dairy-owned plant in Pokeno – located in the Waikato region – but was selling its majority stake in Mataura Valley Milk.
Open Country Dairy, a New Zealand-based milk processor, bought the stake along with the 25% held by China Animal Husbandry Group. A2 Milk said it would pocket NZ$100m from its side of the transaction.
