a2 Milk's China Infant Milk Formula Sales Down 14% on Supply Disruptions

MT Newswires Live
Jul 07

a2 Milk Co. (NZE:ATM, ASX:A2M) said China infant milk formula supply disruptions weighed heavily on fourth-quarter sales, with fiscal 2026 China label infant milk formula sales declining about 14% year on year amid demand surges, freight challenges, production delays, and regulatory changes, according to a Tuesday filing with the Australian and New Zealand bourses.

The company said supply conditions have now improved, with stock levels returning to target and its focus shifting toward winning back customers and driving new user recruitment, per the filing.

The company maintained its fiscal 2026 outlook despite the disruption, supported by strong performance across other categories, with revenue of around NZ$1.97 billion, representing more than 12% growth from fiscal 2025, and earnings before interest, taxes, depreciation, and amortization margin at the upper end of the 14% to 14.5% range, the filing added.

The company's New Zealand shares gained about 3% in recent Tuesday trade.

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