a2 Milk Company (a2MC) reported a positive FY25, with record sales, double-digit earnings, an acquisition and its second dividend.
The company reported that while the ANZ market was flat, overall revenue growth at 13.5 per cent to $1.9 billion due to the US segment up 22.5. per cent, China and Asia up 13.9 per cent, and Mataura Valley Milk (MVM) rising 42.7 per cent.
CEO David Bertolussi said it had been an “exceptional year” for the infant formula business, growing 10 per cent in the year.
“Our Liquid Milk growth was outstanding, up 14 per cent in ANZ and USA, and Other Nutritionals grew by an impressive 23 per cent in China.”
A2MC is now in a top four brand position in China.
“We accelerated innovation by launching a range of new products spanning the infants, kids and seniors nutrition markets increasing our relevance across life stages,” he said.
Its dividend has a 71 per cent pay out ratio.
Snapshot ($NZ)
- Group revenue: $1.9b, up 13.5% on prior corresponding period (pcp);
- EBITDA: $274.3m, up 17.1% pcp;
- NPAT: $202.9m, up 21.1% pcp; and
- Earnings per share: 28c, up 20.9% pcp.
Supply chain “step change”
Bertolussi also announced the acquisition of Yashili New Zealand’s Pokeno plant for around $282 million. The facility, a subsidiary of China Mengniu Dairy Group, has two China-label IMF registrations, with a2MC saying it will invest more than $100 million to increase its capacity and capability over coming years.
In turn, it has divested Mataura Valley Milk (MVM) to Open Country Dairy, with net proceeds around $100 million. A2 Milk will continue sourcing A1 protein-free milk ingredients from MVM under a supply agreement.
MVM will be treated as discontinued operations and the company expects to recognise a loss on sale of MVM of approximately $130 million.
Bortolussi said the moves were a “pivotal moment” in the company’s supply chain transformation, enabling greater control, efficiency, and long-term growth.
