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 Half year report, released 16 February 2026

The a2 Milk Company (“the Company”, “a2MC”) today reported strong first half1 financial and operational results and upgraded FY26 full year guidance.

1H26 Results

1. Strong revenue and EBITDA growth with underlying4 EBITDA % margin improvement

2. Achieved Infant Milk Formula (IMF) revenue growth of 13.6%, driven by: - English label IMF growth of 20.9%, with growing contribution from a2 Genesis™ and new markets - China label IMF growth of 6.5%, achieving record market share

3. Accelerated Other Nutritionals growth of 42.9%5, through recent kids and seniors product innovation, entered paediatric supplements category and developed new kids fortified UHT product for launch in 2H26

4. Delivered strong growth in Liquid Milk of 18.5%, driven by core products and lactose free and grassfed innovations

5. Advanced supply chain transformation with completion of a2 Pokeno acquisition, Mataura Valley Milk divestment and long-term Fonterra milk supply agreement – enabling a2MC to build a higher growth, more profitable and lower risk end-to-end-business. Key transformation streams, including the China label registration amendment process and a2 Pokeno facility and capability upgrades are on track

6. Upgraded FY26 outlook driven by strong performance across all segments and products

Key financials

• Revenue up 18.8% to $993.5 million, driven by strong performance across all segments and products, with growth primarily from core products supported by recent innovation and slightly benefiting from FX and a2 Pokeno sales
• China & Other Asia segment revenue up 20.3%, ANZ up 8.6% and USA up 29.0%
• EBITDA up 18.4% to $155.0 million, with underlying4 EBITDA up 25.9%
• EBITDA % margin of 15.6% consistent with prior year, with underlying4 EBITDA % margin of 16.6% up 0.9ppts
• Net profit after tax (NPAT) up 9.4% to $112.1 million, with underlying4 NPAT up 19.6%
• Basic earnings per share (EPS) up 9.2% to 15.5 cents, with underlying4 EPS up 19.4% to 16.9 cents
• Closing cash of $896.9 million, with operating cash conversion of 90.8%7

-Interim dividend of 11.5 cents per share declared, unimputed and fully franked (~74% NPAT payout)

Revenue grew 18.8% to $993.5 million, driven by strong performance across all segments and product categories, with growth primarily from core products supported by recent innovation. First half growth also benefited modestly from FX (~2ppts) and the inclusion of 1H26 weighted a2 Pokeno external ingredient sales (2.0ppts). The China & Other Asia segment was up 20.3%, led by English label Infant Milk Formula (IMF) and Other Nutritionals growth. USA segment sales were up 29.1% due to core and Grassfed liquid milk growth, whilst ANZ segment sales were up 8.8% driven by Australian liquid milk growth, with Daigou channel sales stabilised.