A2 Milk upgrades revenue guidance after strong Q1 trading
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The news: Dairy company A2 Milk has upgraded its FY26 revenue guidance, after a stronger-than-expected start to the year across its infant milk formula (IMF), other nutritionals, and liquid milk product categories.
The context: A2 Milk now expects low double-digit percentage growth in revenue in FY26 compared to FY25. It had previously guided high single-digit revenue growth.
It also noted that English label IMF revenue growth is expected to be "significantly higher" than that of China label IMF.
As well as stronger trading in key product categories, A2 Milk said it has benefited from movements in actual and forecast currency rates, reflecting a depreciation in the New Zealand dollar, which is expected to inflate sales and expenses.
The company is targeting full-year net profit after tax to be "slightly up" on FY25. It previously said it was expecting a "similar" net profit result year on year.
A2 Milk also reiterated its EBITDA margin guidance of 15% to 16%.
The source: ASX
