A diversified channel mix and higher domestic retail prices offsetting “significant” farmgate milk prices were highlights for Noumi in 1Q25, while the macro-economic environment and consumers’ cautious spending provided ongoing challenges.
1Q25 snapshot
- Revenue: $149.1m, up 2.6% ($3.7m) on prior corresponding period (pcp);
- Plant-based Milks revenue: $47.5m, up 8% ($3.5m) pcp;
- Dairy and Nutritionals revenue: $101.6m, up 0.2% ($0.2m);
One of those challenges is the impact global dairy conditions continue to have on Noumi’s long-life dairy milk export sales and bulk commodities. Total Dairy and Nutritionals revenue had a small gain to $101.6 million, largely thanks to higher prices in the domestic retail market offsetting significant rises in farmgate milk prices, and volume increases.
A 32.5 per cent drop in export sales compared to pcp, albeit expected, was an additional challenge.
Weaker commodity prices for products including bulk cream that had been weak through FY24 picked up in 1Q25 – bulk cream revenue was up 6.1 per cent – but Noumi said that was more because of increased volumes not price.
Domestic retail sales of dairy long-life was up 15.5 per cent pcp, and out-of-home channel sales up 7.1 per cent largely due to growth in Milklab lactose free.
Consumer Nutritionals sales rose 3.3 per cent pcp, driven by growth in its Vital Strength brand. It saw an 11.4 per cent uptick in sales pcp, which was offset by lower sales of Uprotein and Crankt products.
Noumi’s Plant-based Milks business revenue grew eight per cent to $47.5 million. Revenue in the domestic retail channel rose 25.9 per cent, reflecting the first full quarter of Milklab’s expansion into retail.
“This growth reflects the benefit of Noumi’s key initiatives and reinforces the benefits of Noumi’s diversified channel mix across branded, out-of-home and private label,” the company said.
The company’s 1Q25 operating cash flow was $9 million, including ASIC and US litigation and other legal expenses of $4.2 million. In cash terms that was partially offset by $1.7 million from the released term deposit that secured Noumi’s obligation under US litigation.
