The a2 Milk Company Limited Earnings Recaps
Q4 2026
Aug 18, 2026
The stock dropped 3.3% as investors reacted to the clearly disappointing impact of supply chain disruptions on China label infant milk formula (IMF) sales and increased costs, alongside cautious guidance for FY '27 with materially weighted second-half revenue and margins expected.
Key takeaways
- Group revenue grew 12.4% to $1.95 billion; underlying EBITDA rose 5.4% excluding losses from a2 Pokeno, but reported EBITDA declined 2.5% to $284 million.
- China IMF sales grew 5% in a flat market but were significantly affected in the second half by supply chain disruptions causing product availability issues, lost market share, and increased costs.
- Other nutritionals surged 42% and liquid milk advanced 22%, supporting broad-based growth across regions, including 28% growth in the U.S.
- FY '27 guidance anticipates mid-single-digit revenue growth, with performance materially weighted to the second half; first half EBITDA margin expected to be down significantly versus prior year before improvement.
- The company outlined a recovery plan focused on rebuilding trust and market share in China, with early progress noted but uncertainty remains about the pace of recovery.