A2 Milk has raised its full fiscal year revenue guidance to mid to high single-digit revenue growth.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin is still expected to be broadly in line with last fiscal year’s 14 per cent.
The company said its year-to-date trading is ahead of plan, with a large increase in Mataura Valley Milk external ingredient sales, currency impacts and changes in product mix, which have an immaterial effect on EBITDA.
Moreover, English-label infant milk formula sales and liquid milk sales are slightly ahead of plan.
A2 Milk is set to declare its first interim dividend in February next year, establishing a dividend policy for the first time in company history.
“The A2 Milk Company has made considerable progress in developing its operating model and creating a more resilient business,” said chair Pip Greenwood.
“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.”
