AUS
NZ
UK
CA
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IND
Highlights
- Revenue surged 10.1% to NZ$893.8 million, with notable growth in China and the U.S.
- Net profit increased by 7.6% to NZ$91.7 million, despite supply chain challenges.
- FY25 revenue guidance upgraded, boosting investor confidence.
A2 Milk (ASX:A2M) has delivered a solid financial performance in its HY25 results, showcasing double-digit revenue growth and stronger profitability despite temporary supply chain disruptions. The dairy company, known for its A2-protein-only products, continues to expand its footprint across key international markets, with China and the U.S. driving significant revenue gains.
For the six months ending December 31, 2024, A2 Milk reported a 10.1% increase in revenue to NZ$893.8 million. EBITDA grew by 5% to NZ$118.9 million, while net profit after tax (NPAT) climbed 7.6% to NZ$91.7 million. Shareholders were rewarded with an interim dividend of NZ$0.085 per share.
Regional and Product Performance
The company’s regional performance was largely driven by China and other Asian markets, which posted an 11.8% revenue increase. In contrast, the ANZ segment saw a 2.7% decline due to a further slowdown in the Daigou channel. The U.S. market performed well, with a 13.2% revenue rise, while MVM external ingredient sales surged 31.9%.
A closer look at product categories reveals a 7.2% growth in total infant formula sales. Chinese-label infant formula saw a 2% increase, while English-label sales climbed 13%, marking the second consecutive half of growth for the segment. Liquid milk sales in ANZ and the U.S. grew 11.2% and 13.4%, respectively, reflecting increasing consumer demand. Other nutritional product sales also saw a robust 17.3% increase.
A2 Milk maintained its position as a top-5 infant formula brand in China, with an improved brand perception and stronger online sales. The company reported a record-high Chinese-label infant formula market share of 5.3%, up from 4.9% in FY24.
Challenges and Future Outlook
Despite the strong results, the company faced temporary supply chain constraints, leading to additional airfreight costs of approximately NZ$8 million. However, A2 Milk clarified that this was a one-off issue that has since been resolved.
Looking ahead, the company upgraded its FY25 revenue growth guidance from “mid-to-high single-digit” to “low-to-mid double-digit” percentage growth. Additionally, the EBITDA margin is expected to improve compared to FY24.
With a stronger outlook and continued market expansion, A2 Milk remains a key player in the dairy and infant formula industry, attracting attention with its strategic growth trajectory.
