A2 Milk posts 21% profit lift, buys NZ plant for $257m
Make us a preferred source
Make us a preferred source on Google
The news: Dairy company A2 Milk reported a 21.1% increase in full-year net profit to NZD202.9 million ($184.6 million), up from NZD167.58 million last year.
The numbers: The result edged out average market estimates of NZD202.26 million, according to Visible Alpha data.
A2 Milk reported full-year revenue of NZD1.9 billion, up 13.5% year on year, and declared an inaugural total dividend of 20 NZ cents.
The company also announced the acquisition of Yashili New Zealand Dairy Co — which owns a manufacturing facility that makes some A2 Milk products — for NZD282 million. Yashili New Zealand Dairy Co will be acquired from Yashili International Group, a subsidiary of China Mengniu Dairy Group.
A2 Milk will separately divest its 75% stake in Mataura Valley Milk to Open Country Dairy for NZD100 million. The company said Mataura Valley Milk will be treated as discontinued operations, and expects to recognise a loss on its sale of around NZD130 million.
The context: A2 Milk said group revenue growth was driven by double-digit percentage increases in China and the US, but remained flat in Australia and New Zealand.
The company said it aims to capture more of the China market in FY26, while expanding into adjacent categories and new markets. It said it achieved record China label market share in FY25, "despite ongoing market decline and the impact of supply constraints" in Q1 and Q4.
A2 Milk has guided "high single-digit" revenue growth in FY26 compared to FY25. It expects "similar" net profit after tax year on year.
