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a2 Milk Posts 44% Fall in Statutory Profit While Underlying Earnings Rise

Temporary China supply shortages reduced reported net profit with China recovery and Pōkeno capacity set to lift results in the second half of FY27.

A2 milk is seen on a supermarket shelf in Singapore April 16, 2018. Picture taken April 16, 2018. REUTERS/Thomas White

Overview

  • The company reported statutory net profit of NZ$113.6 million, a 44% decline from the prior year, driven by lower revenue from its China‑label infant milk formula due to late‑year supply disruptions.
  • On an adjusted underlying basis a2 Milk recorded profit of NZ$235.8 million, a 7% increase that excludes one‑off items such as Pōkeno acquisition costs.
  • Different outlets highlighted alternative headline metrics, with the Australian Financial Review citing net profit after tax of NZ$207.5 million, revenue of NZ$1.975 billion and EBITDA of NZ$284.4 million.
  • Management guided to mid‑single‑digit group revenue growth in FY27 and said infant milk formula sales are expected to be broadly similar to FY26 while China demand normalises.
  • The company said earnings will be materially weighted to the second half of FY27 as its China distribution recovers and production at the newly acquired Pōkeno plant ramps up, a shift that investors will watch for signs of sustained recovery.