The a2 Milk Company impresses with 1H26 earnings—shares in focus

The a2 Milk Company Ltd (ASX: A2M) share price is in focus today after the company posted an 18.8% jump in revenue to $993.5 million and lifted its FY26 guidance.

What did The a2 Milk Company report?

• Revenue up 18.8% to $993.5 million
• EBITDA up 18.4% to $155.0 million; underlying EBITDA up 25.9%
• Net profit after tax (NPAT) up 9.4% to $112.1 million
• Basic EPS up 9.2% to 15.5 cents; underlying EPS up 19.4% to 16.9 cents
• Closing cash of $896.9 million with 90.8% operating cash conversion
• Interim dividend of 11.5 cents per share (unimputed, fully franked, ~74% NPAT payout)

What else do investors need to know?

The a2 Milk Company saw strong gains across key segments, with China & Other Asia revenue rising 20.3%, ANZ up 8.6%, and the USA surging 29%. Its English label infant milk formula performed especially well, jumping 20.9%, while China label sales hit a record market share.

The company recently expanded its range of kids and seniors nutritionals, and entered the paediatric supplement category, opening fresh growth avenues. Recent supply chain moves—including the completion of its a2 Pokeno acquisition and a divestment of Mataura Valley Milk—aim to support a higher-growth, lower-risk business.

What did The a2 Milk Company management say?

David Bortolussi, Managing Director and CEO, said:

Our upgraded outlook means we are now on track to achieve our $2 billion medium term sales ambition in FY26, a full year ahead of plan. This is testament to the execution of our team and the strength of the a2 brand.

What’s next for The a2 Milk Company?

Looking ahead, the company has lifted its FY26 revenue growth guidance from low to mid double-digit percent, alongside expectations for improved EBITDA margins. Management is focusing on growing its infant formula, adjacent nutrition categories, and expanding in international markets.

With innovation such as new fortified UHT kids’ products and China label paediatric supplements, a2 Milk aims to capture more market share and diversify. The supply chain projects and brand investments are expected to underpin higher profitability and reduce risk further.

The a2 Milk Company share price snapshot

Over the past 12 months, the a2 Milk Company share price has risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has climbed 4% over the same period.

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The post The a2 Milk Company impresses with 1H26 earnings—shares in focus appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.