The a2 Milk Company Ltd (ASX: A2M) share price is in focus today after the company reported a 13.5% rise in group revenue to NZ$1,902 million for FY25. Net profit after tax also jumped 21.1% to NZ$202.9 million and the company declared a dividend of 20 NZ cents per share.
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What did The a2 Milk Company report?
- Group revenue rose 13.5% to NZ$1,902.0 million
- EBITDA increased 17.1% to NZ$274.3 million, with margin up slightly to 14.4%
- Net profit after tax (NPAT) climbed 21.1% to NZ$202.9 million
- Basic earnings per share up 20.9% to 28.0 cents
- Declared full year dividend: 20.0 NZ cents per share, including final dividend of 11.5 cents
- Net cash strengthened to NZ$1,061.2 million
What else happened in FY25?
The a2 Milk Company logged strong growth in China & Other Asia, with revenue up 13.9% as English label IMF sales soared 17.2% despite tough market conditions. The USA segment delivered a 22.5% increase in revenue, narrowing operating losses, while the Australia and New Zealand segment was flat overall but still saw solid growth in liquid milk.
The company launched several new products, including a premium English label infant formula (a2 Genesis™) and fortified milk powders for kids and seniors in China. A key highlight was a2 Milk's focus on sustainability, achieving 98% recyclable packaging and a significant drop in Scope 1 emissions.
What did The a2 Milk Company management say?
Commenting on the result, Managing Director and Chief Executive Officer David Bortolussi said:
We continued to grow market share in China to record levels, elevating The a2 Milk Company to a top-4 brand position in the world's largest infant milk formula market.
What's next for The a2 Milk Company?
Looking ahead, the a2 Milk Company expects high single-digit revenue growth from continuing operations in FY26, with EBITDA margins projected between 15% and 16%. Key priorities include expanding in the China market and delivering its supply chain transformation, notably the acquisition of Yashili New Zealand and the divestment of Mataura Valley Milk.
The company's board is also planning a special dividend of $300 million—pending regulatory approvals for the latest transactions—while reaffirming an ordinary dividend payout policy of 60–80% of normalised NPAT.
The a2 Milk Company share price snapshot
Over the past 12 months, the a2 Milk Company share price has significantly outperformed the market, rising 40% compared to 12% for the S&P/ASX 200 Index (ASX: XJO).
