A2 Milk reports 9.4% HY profit growth driven by Pokeno sales
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The news: Dairy producer A2 Milk posts a 9.4% increase in half-year profit after tax driven by growth in core products, favourable foreign exchange rates and sales from a2 Pokeno.
The numbers: A2 Milk reported half-year net profit after tax to NZD112.1 million ($95.58 million) and an 18.4% increase in EBITDA to NZD155 million.
The net profit after tax topped average forecasts of NZD104.8 million, according to Visible Alpha.
Half-year revenue rose 18.8% to NZD993.5 million, exceeding analysts’ estimates of NZD963.8 million.
The company declared an interim dividend of 11.5 NZ cents per share, above consensus estimates of 10.11 NZ cents per share.
The context: The company attributed the profit growth to stronger sales of its infant milk formula and the launch of a new fortified UHT product for children in the second-half.
It said the acquisition of a2 Pokeno and the divestment of Mataura Valley Milk supported higher growth and improved profitability.
CEO David Bortolussi said the company has upgraded its FY26 guidance and remains on track to achieve its medium-term sales target of $2 billion, while declaring an interim dividend at the upper end of its policy range.
The source: ASX
