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 FY26 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 Infant Milk Formula sales up 13.6% (English label up 20.9%, China label up 6.5%), Other Nutritionals up 42.9%, and Liquid Milk up 18.5%.

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

• Declared an interim dividend of 11.5 cents per share (~74% NPAT payout) and announced intention for a NZD 300 million special dividend, pending regulatory approval.

• On track to reach $2 billion medium-term sales ambition in FY26, a year ahead of plan.

Financial highlights

• Net sales revenue of $993.5 million, up 18.8% year-over-year; EBITDA up 18.4% to $155.0 million; underlying EBITDA up 25.9% to $164.8 million.

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

• Basic EPS up 9.2% to 15.5 cents; underlying EPS up 19.4% to 16.9 cents.

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

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

Outlook and guidance

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

• Net profit after tax expected to be up on FY25 reported; cash conversion of ~80%; capital expenditure of $60–$80 million.

• On track to achieve $2 billion revenue in FY26, a year ahead of amended plan.

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

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