Half-Year Results Exceed Expectations (Image Credits: Pixabay)
New Zealand – The A2 Milk Company revealed robust first-half financials that have propelled its long-term revenue ambition into sharper focus, with leaders now anticipating the NZ$2 billion mark in the current fiscal year.[1]
Half-Year Results Exceed Expectations
Revenue for the six months ended December 31, 2025, climbed 18.8% to NZ$993.5 million, marking a significant step forward for the infant formula and fresh milk specialist.[1]
Earnings before interest, taxes, depreciation, and amortization rose 18.4% to NZ$155 million, while underlying EBITDA grew even faster at 25.9%.[1] Net profit after tax increased 9.4% to NZ$112.1 million, with basic earnings per share up 9.2% to 15.5 cents. The EBITDA margin held steady at 15.6%, and management guided for 15.5% to 16% by fiscal year-end.
This performance underscores the company’s disciplined execution amid competitive dairy markets.
Balanced Growth Spans Regions and Products
Sales momentum varied by geography, with standout gains in high-potential areas. China and Asia generated NZ$739 million in revenue, a 20.3% rise, while the US delivered NZ$83.2 million, surging 29%.[1] Australia and New Zealand contributed NZ$171.3 million, up 8.6%.
| Region | Revenue (NZ$m) | Growth (%) |
|---|---|---|
| China/Asia | 739 | 20.3 |
| US | 83.2 | 29 |
| Australia/NZ | 171.3 | 8.6 |
Product lines also shone: infant formula sales advanced 13.6%, with English-label powders up 20.9% and China labels rising 6.5%. Liquid milk volumes expanded 18.5%, fueled by 29.3% growth in the US and 11.9% in Australia and New Zealand.[1]
- Infant formula remains the core driver, outperforming broader China market trends.
- Liquid milk benefits from rising consumer awareness of A2 protein advantages.
- US expansion aligns with recent dietary guidelines promoting whole milk options.
Raised Outlook Signals Accelerated Path Forward
Building on these results, A2 Milk lifted its full-year fiscal 2026 revenue growth forecast to the mid double-digits, from prior low double-digit expectations set in November.[1] This adjustment positions the NZ$2 billion medium-term target – originally slated for fiscal 2027 – for achievement in 2026.
Strategic investments support this trajectory, including a NZ$100 million capacity boost at the acquired Yashili New Zealand Dairy plant in Pokeno. The company also divested a majority stake in Mataura Valley Milk to Open Country Dairy for NZ$100 million, sharpening focus on core operations.
Shares responded positively, climbing 5% to NZ$10.50 in New Zealand trading on February 16, 2026, extending 12-month gains to 34%.[1]
Executive Confidence Centers on Key Markets
CEO and Managing Director David Bortolussi highlighted the momentum. “We continue to execute our growth strategy with a focus on maximising opportunities in China infant-milk formula,” he stated.[1]
“Infant-milk formula remains central to our growth strategy and continues to outperform the China market, delivering 13.6% year-on-year revenue growth,” Bortolussi added. He also noted liquid milk’s strength: “Our liquid-milk businesses continue to perform exceptionally well in Australia and the US, with both achieving double-digit revenue growth as more consumers embrace the benefits of A2 milk.”
Key Takeaways
- Half-year revenue hits NZ$993.5m, up 18.8%, nearing half the NZ$2bn goal.
- US leads regional growth at 29%; China/Asia follows at 20.3%.
- FY2026 outlook upgraded to mid-teens growth, target now for this year.
A2 Milk’s surge reflects effective global positioning in premium dairy, with new US guidelines offering further tailwinds. As the company nears its ambitious benchmark, investors watch for sustained execution. What steps will propel it across the finish line? Share your thoughts in the comments.
