A2 Milk Co. is buying an infant-formula business in its home market of New Zealand and plans to invest NZ$100m ($59.3m) to increase factory capacity.
The New Zealand and Australia-listed company made a multi-faceted full-year results announcement today (18 August) that included the acquisition of a Yashili New Zealand Dairy-owned plant in Pokeno – located in the Waikato region – along with the sale of its majority stake in Mataura Valley Milk.
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A2 Milk said the Pokeno site already has two registrations for Chinese label infant milk formula (IMF), bolstering the company’s current presence in a market that generates the majority of its annual revenue.
In a stock exchange filing, A2 Milk implied the formula maker has also acquired Yashili New Zealand Dairy in the transaction, a business in which French dairy giant Danone took an interest in 2018/19.
A spokesperson for A2 Milk clarified that was the case when asked for confirmation by Just Food today, as the company noted Danone is “no longer a shareholder”.
As part of what A2 Milk called its “supply chain transformation strategy”, the filing stated: “The acquisition of an integrated nutritional manufacturing facility with two CL IMF product registrations, located in Pokeno, New Zealand, by purchasing all of the shares in Yashili New Zealand Dairy Co. Limited, from Yashili International Group Limited (a subsidiary of China Mengniu Dairy Group Limited) for approximately $282 million on a debt and cash free basis.”
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By GlobalDataJust Food has also asked Danone to clarify when it exited its investment in Yashili New Zealand Dairy.
A2 Milk’s CEO and managing director David Bortolussi said: “The acquisition of the Pokeno manufacturing facility and related products represents a pivotal moment for The A2 Milk Company and the execution of our supply chain transformation strategy.
“The transactions enable the company to build a better, higher growth, lower risk, end-to-end business and deliver substantial benefits to shareholders.”
Bortolussi added that the Pokeno facility and its team had already played a part in “co-developing and producing” A2 Milk’s English label formulas, A2 Genesis and A2 Gentle Gold.
As A2 Milk reported across-the-board increases in revenue and profits for the 2025 fiscal year, the company revealed it was selling its 75% holding in Mataura Valley Milk (MVM), an interest it bought in the local dairy nutrition business in 2021.
Open Country Dairy, a New Zealand-based milk processor, is buying the stake along with the 25% held by China Animal Husbandry Group. A2 Milk said it will pocket NZ$100m from its side of the transaction.
A2 Milk added it expects to incur a loss of around NZ$130m from the disposal. MVM will continue to supply A2 Milk with A1 protein-free ingredients under a new supply agreement.
“MVM is an advanced nutritional powder drying facility that continues to have significant potential but is no longer the optimal asset and pathway to achieve our strategic objectives,” Bortolussi said.
Meanwhile, A2 Milk said the multi-year NZ$100m investment in the newly acquired Pokeno factory will lead to more than 100 new jobs over time.
On the results front, A2 Milk reported a 13.5% increase in 2025 sales revenue to NZ$1.9bn. China and the wider Asia region generated NZ$1.3bn, up 13.9%.
IMF products sold in China and Asia provided NZ$1.19bn, an increase of 12.4% over the previous 12 months.
For A2 Milk as a group, EBITDA climbed 17.1% to NZ$274.3m, with the margin rising 0.4 percentage point to 14.4%.
Net profit after tax rose 21.1% to NZ$202.9m, while basic EPS was up 20.9% at 28 cents.
Looking ahead to 2026, A2 Milk expects revenue to grow in the high-single-digit area with an EBITDA margin of 15% to 16%.
