The A2 Milk Company has reported strong revenue growth for the last fiscal year despite softer sales of China-label infant milk formula (IMF).
Revenue for the 12 months ended June 30 jumped 12.4 per cent to $1.974 billion, driven by growth in English label IMF, other nutritionals and liquid milk.
Management noted that the top-line results were impacted by a reduction in China label IMF sales due to supply chain disruption in the fourth quarter. However, they said the contributing factors are now resolved, and product availability has significantly improved.
ANZ revenue was up 10.2 per cent during the year, fuelled by Australian liquid milk. US sales soared 28.6 per cent thanks to core and grass-fed liquid milks.
The China and other Asia segment saw an 11.2 per cent increase, led by English label IMF and other nutritionals.
By category, total IMF sales grew 4.7 per cent, with English label sales up 23.2 per cent driven by cross-border e-commerce and the offline-to-online channel. China label sales dropped 14 per cent due to supply chain disruption.
Liquid Milk sales grew 21.8 per cent, while other nutritionals sales surged 59.9 per cent.
On the bottom line, net profit after tax from continuing operations decreased 5.8 per cent to $207.5 million.
“FY26 was another year of strong execution by our team; we delivered revenue growth of 12% with all markets and categories in growth,” said CEO David Bortolussi.
“Despite the impacts of supply chain disruption, we are expecting mid-single-digit per cent revenue growth and improved earnings next year, supported by the robustness of our business model and growth strategy,” he added.
