The a2 Milk Company says it’s expecting mid to high single-digit revenue growth in FY25, updating its previous guidance of mid single-digit. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) as a percentage of revenue is expected to be broadly in line with FY24. The company has also introduced a dividend policy.
The company said year to date trading was ahead of its guidance due to a “significant increase” in MVM external ingredient sales compared to its forecast due to higher global dairy trade prices, currency impacts, and changes in product mix. English Label infant milk formula sales (IMF) and Liquid Milk sales were also slightly ahead of plan.
A2MC announced its dividend policy with a payout ratio target of between 60-80 per cent of net profit after tax excluding non-recurring and other items (normalised NPAT). It expects to declare its first interim dividend in February 2025 based on 1H25 results and in line with the bottom end of the range of 60 per cent normalised NPAT.
Chair Pip Greenwood said, “The a2 Milk Company has made considerable progress in developing its operating model and creating a more resilient business. Given this progress and our strong balance sheet position, the Board believes the time is right to introduce a dividend policy that delivers sustainable cash returns to shareholders over time.”
CEO David Bortolussi said he was pleased to introduce the dividend “to reward our shareholders for their support over many years and to reflect the significant progress made since we announced our refreshed growth strategy in 2021”.
