The a2 Milk Company (ATM) H1 2026 earnings summary

Executive summary

• Achieved strong revenue and EBITDA growth in the first half, with upgraded FY26 guidance and a declared interim dividend at the high end of policy range, driven by robust performance across all segments and products.

• Growth was led by core products, innovation, and strong performance in China, ANZ, and US segments, with a focus on China infant milk formula, adjacent categories, and new markets.

• Completed a2 Pokeno acquisition, divested Mataura Valley Milk, and secured a long-term Fonterra milk supply agreement, advancing supply chain transformation.

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

Financial highlights

• Revenue increased 18.8% year-over-year to $993.5 million, with EBITDA up 18.4% to $155.0 million and underlying EBITDA up 25.9%.

• Net profit after tax up 9.4% to $112.1 million; underlying NPAT up 19.6%; basic EPS up 9.2% to 15.5 cents.

• Gross margin at 48.9%, down 1.1 pts due to a2 Pokeno underutilization; excluding this, gross margin slightly up.

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

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

Outlook and guidance

• FY26 revenue growth guidance upgraded to mid double-digit percent versus FY25, with EBITDA margin range tightened to 15.5%-16%.

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

• Medium-term revenue ambition of $2 billion in FY26 expected to be achieved 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.