• Achieved Group double-digit revenue growth with full year revenue and earnings guidance upgraded
• Delivered English label IMF double-digit revenue growth driven by CBEC and O2O channels supported by EL market recovery
• Continued to gain record market share in China label IMF whilst minimising impact from temporary supply constraints that were resolved during the half

The a2 Milk Company Limited reported strong operating and financial performance in the first half of fiscal year 2025. The company achieved Group double-digit revenue growth, with full year revenue and earnings guidance upgraded. This was driven by double-digit revenue growth in English label Infant Milk Formula (IMF) through CBEC and O2O channels, supported by a recovery in the EL IMF market. The company also continued to gain record market share in China label IMF, while minimising the impact of temporary supply constraints that were resolved during the half. Other highlights include ramping up innovation with new product launches in IMF and Other Nutritionals categories, and introducing a dividend policy for the first time in the company's history. Financially, the company delivered revenue growth of 10.1% to $893.8 million, EBITDA growth of 5.0% to $118.9 million, and net profit after tax (NPAT) growth of 7.6% to $91.7 million. The company also maintained a strong balance sheet, with closing net cash of $1,014.0 million and a cash conversion rate of 106%.

For FY25, the Company is now expecting: revenue growth of low to mid double-digit percent (previously mid to high single-digit percent), gross margin (% of sales) to be similar to up, marketing expenses (% of sales) to be similar to up, administrative & other expenses (% of sales) to be down, EBITDA margin (% of revenue) to be slightly up (previously broadly in line), operational cash conversion to be approximately 90%, and capital expenditure to be approximately $20 million.

The company continues to execute on its growth strategy, with a key focus on transforming its supply chain. This includes expanding China label market access, developing supply capability to enable innovation, and investing in people and planet leadership. The company is well positioned to achieve its medium-term revenue ambition of approximately $2 billion, with planned growth across various markets and categories.