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 the U.S.

• Completed a2 Pōkeno acquisition, divested MVM, and secured a Fonterra supply agreement, advancing supply chain transformation.

• Declared an interim dividend at the high end of policy range and announced intention for a NZD 300 million special dividend, subject to regulatory approval.

• Net profit from continuing operations increased to $112.1 million, but total profit was impacted by a significant 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 (26% underlying, excluding a2 Pōkeno), with underlying EBITDA margin up 0.9 pts to 16.6%.

• 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 1.1 pts due to a2 Pōkeno underutilization; excluding this, gross margin slightly up.

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

Outlook and guidance

• Upgraded FY 2026 revenue growth guidance to mid double-digit percent, with EBITDA margin range tightened to 15.5%–16% and NPAT expected to be up on FY 2025.

• On track to achieve NZD 2 billion revenue in FY 2026, a year ahead of amended plan.

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

• Management focused on leveraging new supply chain capabilities for further benefits.