Did a2 Milks Growth Momentum Outshine Its Statutory Profit Slump?
Source: Kapitales Research
Highlights:
The a2 Milk Company Limited (ASX: A2M) rose nearly 3% at the time of writing after announcing its half-year FY26 results.
Revenue from continuing operations increased 18.8% to NZ$993.5 million at the time of writing, while profit from continuing operations climbed 9.4% to NZ$112.1 million at the time of writing.
Net profit attributable to shareholders declined 88.1% to NZ$10.91 million at the time of writing, mainly due to losses linked to discontinued operations and asset divestments.
The a2 Milk Company Limited (ASX: A2M) reported its financial results for the six months ended 31 December 2025, with investors responding positively as the share price gained nearly 3% at the time of writing. Although statutory profit fell sharply, underlying operating performance showed measurable improvement. At the time of writing, shares of The a2 Milk Company Limited were trading at AU$9.100, down AUZ$0.580 or 6.807% for the session.
What impacted headline earnings?
The company delivered solid top-line growth, with revenue from continuing activities reaching NZ$993.5 million at the time of writing. Profit from continuing operations rose to NZ$112.1 million at the time of writing, reflecting stronger sales momentum and operating leverage. However, reported net profit attributable to shareholders dropped to NZ$10.91 million at the time of writing. This decline was largely driven by losses associated with discontinued operations, particularly following the exit from Mataura Valley Milk, which significantly affected statutory results.
Where is operational strength emerging?
China and Other Asia remained the dominant contributor, generating NZ$738.9 million in revenue at the time of writing. Infant milk formula continued to anchor sales, while liquid milk and other nutrition products supported diversification. The acquisition of the a2 Pokeno manufacturing facility also marked a strategic move to strengthen supply chain control and long-term margin resilience.
What should investors watch next?
The company closed the period with NZ$896.9 million in cash and term deposits at the time of writing, underscoring balance sheet stability. An interim dividend of NZ11.50 cents per share was approved. While short-term profit volatility may concern some investors, the broader focus now shifts to execution, margin expansion, and sustained growth across core Asian markets.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Did a2 Milks Growth Momentum Outshine Its Statutory Profit Slump?
Highlights:
The a2 Milk Company Limited (ASX: A2M) reported its financial results for the six months ended 31 December 2025, with investors responding positively as the share price gained nearly 3% at the time of writing. Although statutory profit fell sharply, underlying operating performance showed measurable improvement. At the time of writing, shares of The a2 Milk Company Limited were trading at AU$9.100, down AUZ$0.580 or 6.807% for the session.
What impacted headline earnings?
The company delivered solid top-line growth, with revenue from continuing activities reaching NZ$993.5 million at the time of writing. Profit from continuing operations rose to NZ$112.1 million at the time of writing, reflecting stronger sales momentum and operating leverage. However, reported net profit attributable to shareholders dropped to NZ$10.91 million at the time of writing. This decline was largely driven by losses associated with discontinued operations, particularly following the exit from Mataura Valley Milk, which significantly affected statutory results.
Where is operational strength emerging?
China and Other Asia remained the dominant contributor, generating NZ$738.9 million in revenue at the time of writing. Infant milk formula continued to anchor sales, while liquid milk and other nutrition products supported diversification. The acquisition of the a2 Pokeno manufacturing facility also marked a strategic move to strengthen supply chain control and long-term margin resilience.
What should investors watch next?
The company closed the period with NZ$896.9 million in cash and term deposits at the time of writing, underscoring balance sheet stability. An interim dividend of NZ11.50 cents per share was approved. While short-term profit volatility may concern some investors, the broader focus now shifts to execution, margin expansion, and sustained growth across core Asian markets.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au