The a2 Milk Company (ATM) H1 2026 earnings summary

Executive summary

• Achieved strong revenue and EBITDA growth in the first half, with underlying EBITDA margin improvement and upgraded full-year guidance, driven by robust performance across all segments and products.

• Growth was led by core products, innovation, and strong performance in China, Asia, ANZ, and US markets, with English label IMF up 20.9%, China label IMF up 6.5%, and Other Nutritionals up 42.9%.

• Completed major supply chain transformation: acquired a2 Pokeno, divested Mataura Valley Milk (MVM), and secured a long-term supply agreement with Fonterra.

• Declared an interim dividend at 11.5 cents per share and announced intention for a NZD 300 million special dividend, pending regulatory approval.

• Net profit from continuing operations increased to $112.1 million, but total profit was impacted by a $103.7 million loss from discontinued operations.

Financial highlights

• Net sales revenue of NZD 992.6 million, up 18.8%–19% year-over-year; EBITDA up 18.4% to $155.0 million; underlying EBITDA up 25.9% to $164.8 million.

• Net profit after tax from continuing operations up 9.4% to $112.1 million; underlying NPAT up 19.6% to $122.6 million.

• Gross margin at 48.9%, down 1.1pp due to a2 Pokeno losses; excluding these, gross margin slightly up.

• Interim dividend of 11.5 cents per share declared, payout ratio ~74% of NPAT.

• Closing cash balance of $896.9 million, with operating cash conversion at 90.8%–91%.

Outlook and guidance

• Upgraded FY26 revenue growth guidance to mid double-digit percent, with EBITDA margin range tightened to 15.5%–16%.

• Net profit after tax expected to be up on FY25 reported; on track to achieve NZD 2 billion revenue in FY26, a year ahead of plan.

• Board intends to declare a $300 million special dividend, subject to regulatory approvals for a2 Pokeno China label registration amendments.

• Guidance assumes adequate supply from Synlait and no major disruptions at a2 Pokeno.