• Strong demand for a2™ brand across all product categories and regions
• Temporary in-market product availability issues due to supply chain challenges
• Revised FY26 guidance: lower IMF sales, additional one-off supply chain costs, delay in cash receipts

The a2 Milk Company has provided a trading, supply chain and outlook update for its infant milk formula (IMF) business in China. The company continued to experience strong demand for the a2™ brand across all product categories and regions in 3Q26, with positive year-to-date offtake trends. However, the company is currently experiencing temporary in-market product availability issues primarily in relation to shortfalls of China label IMF product at distributors and retailers, due to factors such as strong demand, freight challenges, production issues, and extended product release and customs clearance times. While the supply chain impacts are primarily timing-related and one-off in nature, their cumulative effect is now expected to impact the company's performance against FY26 guidance. Accordingly, the company now expects lower IMF sales, mostly related to China label sales, additional one-off supply chain costs, and a delay in cash receipts into FY27. The company's revised FY26 guidance includes revenue growth of low to mid double-digit percent versus FY25, EBITDA margin of approximately 14.0% to 14.5%, and NPAT similar to or down on FY25 reported. The company will continue to reinvest in the business in 4Q26 to support brand health, growth and long-term value creation.

For FY26, the company expects: revenue growth of low to mid double-digit percent versus FY25, EBITDA margin of approximately 14.0% to 14.5%, depreciation and amortisation of approximately $20 million, lower interest income, NPAT similar to or down on FY25 reported, and cash conversion of approximately 50%.

Notwithstanding the short-term supply chain challenges, the company intends to continue to reinvest in the business in 4Q26 to support brand health, growth and long-term value creation.