• Double-digit revenue and EBITDA growth
• Accelerated growth across all segments and products
• Successful a2 Pokeno acquisition and supply chain transformation

The a2 Milk Company reported a strong 1H26 performance, with revenue up 18.8% to $993.5 million and EBITDA up 18.4% to $155.0 million. Underlying EBITDA, excluding a2 Pokeno losses and one-off transformation costs, grew 25.9% to $164.8 million. The company achieved Infant Milk Formula (IMF) growth of 13.6%, driven by 20.9% growth in English label IMF and 6.5% growth in China label IMF. Other Nutritionals also saw accelerated growth of 42.9%, excluding a2 Pokeno external ingredient revenue. The company delivered strong growth in Liquid Milk of 18.5% across its ANZ and USA segments. The company also made significant progress on its supply chain transformation, completing the a2 Pokeno acquisition, the Mataura Valley Milk divestment, and a Fonterra milk supply agreement. This is expected to build a higher growth, more profitable, and lower-risk end-to-end business. The company has upgraded its FY26 outlook, expecting mid double-digit revenue growth and an EBITDA margin of approximately 15.5% to 16.0%.

For FY26, the company expects: mid double-digit percent revenue growth versus FY25 continuing operations; EBITDA margin of approximately 15.5% to 16.0%; depreciation and amortisation of approximately $20 to $24 million; lower interest income due to lower market rates and net transaction cash outflows; NPAT up on FY25 reported; cash conversion of approximately 80%; and capital expenditure of approximately $60 to $80 million.

The company remains focused on executing its growth strategy, including capturing the full potential in China IMF, ramping up product innovation, entering new markets, investing in people and planet leadership, and transforming its supply chain. The company is on track to achieve its medium-term revenue ambition of ~$2 billion by FY26, a year ahead of its amended plan.