The a2 Milk Company Limited Analysis

Overview

The a2 Milk Company Limited was founded in February 2000 on a simple, yet profound, discovery that different cows produce different milk proteins that behave differently in people's bodies.

Milk that is naturally rich in the A2 beta-casein protein (and free from all A1 beta-casein protein) has been found by many to be easier to digest.

The a2 Milk Company single-mindedly pioneers scientific understanding, operational know-how and commercialisation of premium a2 Milk brand products around the world. Today, we have a range of products available in Australia, New Zealand, UK, USA and China.

The a2 Milk Company Limited listed on the NZAX market in April 2004 and completed capital raising and transferred the listing to the NZX Main board in 2012. The company was dual listed on the ASX in March 2015.

For more information visit: www.aboutthea2milkcompany.com

Performance

The following information was extracted from The a2 Milk Company Limited's Full Year report, released 18 August 2025:

The a2 Milk Company (“the Company”, “a2MC”) today marked its 25th year since formation reporting strong FY25 results and simultaneously announcing major updates that substantially progress its supply chain transformation strategy and capital structure optimisation.

FY25 Results

1. Delivered record sales of $1.9 billion with double-digit growth in revenue, EBITDA and EPS

2. Reached top-4 brand position in China’s IMF1 market, a major milestone in brand health and market penetration

3. Achieved English label (EL) IMF double-digit sales growth and record market share in China label (CL) IMF driven by high new user recruitment

4. Launched a range of new products targeting growth opportunities in the infant, kids and seniors nutrition segments, and entered the Vietnam IMF market

5. Initiated returns to shareholders, declaring first ever dividends totalling 20.0 cents per share for FY25

Key financials and FY26 Outlook

• Revenue up 13.5% to $1,902.0 million

-EBITDA up 17.1% to $274.3 million with an EBITDA % margin of 14.4% up 0.4 ppts

-Net profit after tax (NPAT) up 21.1% to $202.9 million4

-Basic earnings per share (EPS) up 20.9% to 28.0 cents

• Closing net cash5 of $1,061.2 million up $92.2 million on 30 June 2024 with operating cash conversion of 95%6
• Total FY25 dividends declared of 20.0 cents per share (~71% payout), with a final dividend of 11.5 cents per share declared (fully franked and ~78% imputed)
• FY26 continuing operations guidance for revenue growth of high-single digit percent versus FY25 and EBITDA % margin to be approximately 15% to 16% (see full FY26 Outlook in the “2025 Annual results and Supply Chain Transformation update” announcement)