A2 Milk reports 44% lower net profit after asset realignment
The A2 Milk Company said statutory net profit after tax fell from $202.9m to $113.6m in the financial year ended June 30, 2026. The result included a $96m net loss linked to the divestment of the company’s majority stake in Mataura Valley Milk, a processing plant near Gore in New Zealand.
Underlying net profit after tax increased by 7% to $235.8m. Underlying earnings before interest, tax, depreciation and amortisation rose 5.4% to $307.6m. Revenue reached $1.97bn, an annual increase of 12.4%, bringing the company close to its long-term $2bn sales target.
Managing director and chief executive David Bortolussi said the company maintained an ordinary dividend of 21 cents, following the distribution of a $300m special dividend. The results separated the statutory effect of the Mataura Valley transaction from the company’s underlying financial measures.
The China-label infant-milk-formula business recorded revenue of $544.3m, down 14%. The company reported production backlogs, higher freight rates and mismatches between supply and demand during the June quarter. These conditions contributed to products being unavailable in some retail outlets, and the company said some consumers moved to competing brands.
Revenue in the broader China and Asia segment rose 11.2% to $1.45bn. Cross-border demand for English-label infant formula remained strong, while liquid milk and nutritional products in Australasia recorded double-digit growth. These results were reported alongside the inventory disruptions affecting the China-label formula channel.
During the year, the company acquired and integrated the Pōkeno manufacturing facility in New Zealand’s North Island, which now operates as a2 Pōkeno. A multi-million-dollar capital upgrade is under way at the site. The facility is intended to manufacture directly two China-label infant-formula products whose registrations are scheduled for launch in the first half of financial year 2027.
The company also divested the underused Mataura Valley asset in the South Island. Its stated supply-chain changes combine the disposal of that facility with increased processing capacity at Pōkeno. The results identified geopolitical conditions, currency movements and Chinese SAMR regulatory processes among the factors affecting the company’s operating environment.
