The a2 Milk Company (ATM) H2 2025 earnings summary

Executive summary

• Achieved record FY25 sales of NZD 1.9 billion, with double-digit growth in revenue, EBITDA, and EPS, driven by strong China market performance and growth strategy execution.

• Secured a top-4 brand position in China IMF market, with record market share in both English and China label IMF segments, and new user recruitment.

• Launched new products in infant, kids, and seniors nutrition, entered the Vietnam IMF market, and introduced inaugural dividends totaling 20.0 cents per share for FY25.

• Announced major supply chain transformation: acquisition of Yashili NZ (a2 Pokeno) and divestment of MVM.

Financial highlights

• Revenue up 13.5% year-over-year to $1,902.0 million, with 16.8% growth in H2.

• EBITDA increased 17.1% to $274.3 million; EBITDA margin at 14.4%, up 0.4 ppts.

• Net profit after tax up 21.1% to $202.9 million; EPS up 20.9% to 28.0 cents.

• Gross margin at 46.1%, slightly higher due to lower IMF ingredient costs and favorable FX.

• Closing net cash at period end: $1,061.2 million, up $92.2 million from June 2024; operating cash conversion at 95%.

Outlook and guidance

• FY26 revenue growth expected at high single-digit percent vs. FY25 continuing operations; EBITDA margin guidance: 15%-16%.

• NPAT expected to be similar to FY25 reported (NZD 203 million); cash conversion targeted at 80–90%.

• Special dividend of $300 million planned, subject to regulatory approvals and MVM divestment completion.

• Ordinary dividend policy reaffirmed at 60%-80% payout of normalized NPAT.