The a2 Milk Company (ATM) H1 2025 earnings summary

Executive summary

• Achieved double-digit revenue growth of 10.1% to NZD 893.8 million for H1 FY2025, overcoming supply constraints and delivering at the top end of guidance.

• Upgraded FY2025 full-year guidance and declared the first-ever interim dividend of NZD 0.085 per share, fully imputed and franked.

• Delivered strong English and China label IMF growth, record China label market share, and launched new products for all life stages.

• Continued focus on China growth, innovation, and supply chain transformation.

• Total comprehensive income attributable to owners reached $103.0 million, more than doubling year-over-year.

Financial highlights

• Revenue up 10.1% to NZD 893.8 million; EBITDA up 5% to NZD 118.9 million, including NZD 8 million in non-recurring airfreight costs.

• Net profit after tax up 7.6% to NZD 91.7 million; basic EPS up to 12.7 cents.

• Gross margin at 44.8%, down nearly two points due to non-recurring costs.

• Cash conversion exceeded 100%, with net operating cash inflow of NZD 78.8 million and closing net cash of NZD 1,014.0 million.

• Interim dividend of 8.5 cents per share declared, totaling approximately NZD 62 million.

Outlook and guidance

• FY2025 revenue guidance raised to low- to mid-double-digit percentage growth over FY2024.

• EBITDA margin expected to increase slightly in FY2025 versus FY2024; operational cash conversion targeted at ~90%.

• Stronger-than-expected demand for a2 Platinum and higher liquid milk sales, especially in the U.S.

• Capital expenditure forecast at NZD 20 million.

• FX rates and higher GDT pricing noted as factors impacting results.