Noumi’s Financial Balancing Act: Growth Amidst Challenges
The company’s net revenue grew modestly by 0.9% year-on-year to AUD 299.3 million, driven by the robust performance of its Plant-based Milks segment. The flagship Milklab brand continued to gain traction both domestically and abroad, with export sales surging 26.6%—a testament to growing consumer appetite in Southeast Asia and China for alternative dairy products. The segment’s adjusted operating EBITDA rose 9.2% to AUD 25.3 million, highlighting the profitability of its diversification efforts into new retail formats and geographies.
Dairy & Nutritionals, the company’s more traditional business unit, demonstrated signs of recovery, with adjusted operating EBITDA more than doubling to AUD 4.6 million. However, declining export volumes weighed on overall revenue, which fell 1.5% to AUD 206.1 million. This segment also took a substantial hit from a non-cash impairment charge of AUD 50 million, a move that reflects industry-wide pricing pressures and excess processing capacity in Australia’s dairy sector.
Despite these operational gains, Noumi reported a statutory net loss of AUD 82.1 million—significantly deeper than the AUD 27.7 million loss recorded in H1 FY24. The key culprit was a fair value adjustment on its convertible notes, which amounted to AUD 36.3 million. The company now faces the challenge of addressing the looming AUD 600 million redemption value due in May 2027.
CEO Michael Perich remained upbeat, pointing to the firm’s ability to maintain liquidity with AUD 36.5 million in cash and undrawn facilities, as well as its strategic shift toward higher-margin products. “These improved results demonstrate that the company is focused on sustainable growth and repeatable performance,” he said, emphasizing the need to resolve legacy legal issues and refine its capital structure.
Noumi has made headway on the litigation front, settling shareholder class actions stemming from governance failures prior to 2021. With its final court case scheduled for April, management is keen to move past these distractions and concentrate on long-term strategic goals.
Looking ahead, the company plans to double down on its strengths. In Plant-based Milks, it aims to expand the Milklab brand’s footprint, leveraging strong demand for oat-based and lactose-free alternatives. In Dairy & Nutritionals, the focus remains on strengthening domestic channels and optimizing its product mix amid continued market uncertainty.
Noumi’s financials reveal a company in transition. Operationally, it is on firmer ground, with revenue growth and efficiency gains signaling a path forward. Yet, structural financial burdens, including convertible note obligations and a challenging dairy industry landscape, loom large. The coming quarters will be pivotal as Noumi seeks to solidify its growth trajectory while addressing its balance sheet vulnerabilities.
