The a2 Milk Company has revised its revenue guidance for fiscal year 2026 upwards, citing stronger-than-anticipated trading across its core product categories and favourable currency movements. The company noted that infant milk formula, other nutritional products, and liquid milk sales are all performing ahead of previous expectations. The a2 Milk Company specialises in milk products that contain only the A2 type of beta-casein protein, as opposed to the more common A1 protein. They aim to provide products that are easier for some people to digest.
A weaker New Zealand dollar is also projected to positively impact reported sales and expenses. However, the company anticipates that the net effect on earnings before interest, taxes, depreciation, and amortisation (EBITDA), after accounting for hedge losses, will not be material. On a continuing-operations basis, a2 Milk now forecasts low double-digit revenue growth in FY26 compared to FY25.
Revenue growth in the first half of the fiscal year is expected to outpace that of the second half. Specifically, English-label infant formula sales are projected to grow “significantly” faster than the China-label range. The company has reaffirmed its expected EBITDA margin of 15–16 per cent.
Depreciation and amortisation are forecast to be between $NZ20 million and $NZ24 million. Interest income is expected to decrease due to lower market rates and net cash outflows. The company projects net profit to be “slightly up” on FY25, with cash conversion forecast at 80–90 per cent and capital expenditure at $NZ60–$NZ80 million. Further details are available in the company’s FY26 trading update within its annual meeting presentation released on 20 November.
