a2 Milk Full‑Year Results Overview
a2 Milk, the New Zealand‑based dairy producer, announced that its net profit attributable for the fiscal year ended 30 June 2026 fell to NZ$113.6 million (US$66.94 million), representing a 44 percent decline from NZ$202.9 million in the prior year.
Revenue from its China‑label infant milk formula segment dropped 14 percent to NZ$544.3 million, as supply‑chain disruptions, a production backlog and higher freight costs led to product shortages in the June quarter, forcing many customers to switch to competing brands.
The company noted that stock levels have since improved and it is working to regain lost customers while attracting new buyers.
On an underlying basis, a2 Milk reported full‑year profit of NZ$235.8 million, a 7 percent increase over the previous year. Revenue from its largest market, China and other Asian regions, rose 11.2 percent to NZ$1.45 billion, driven by higher sales of English‑label infant milk formula products.
The board declared a final dividend of 9.5 New Zealand cents per share, down from 11.5 cents per share in the prior year.
Key Financial Figures
- Net profit attributable: NZ$113.6 million (‑44 % YoY)
- Underlying profit: NZ$235.8 million (+7 % YoY)
- China‑label formula revenue: NZ$544.3 million (‑14 % YoY)
- China & other Asia revenue: NZ$1.45 billion (+11.2 % YoY)
- Final dividend: 9.5 cents per share (down from 11.5 cents)
Operational Commentary
The company attributed the profit decline to material supply‑chain constraints that reduced product availability in the fourth quarter of 2026, prompting a shift by existing users to alternative brands. It indicated that the situation has been mitigated and that efforts are underway to restore market share.