a2 Milk reports net profit of $120.12M in FY 2025, acquires New Zealand formula plant

AUSTRALIA – a2 Milk, an infant milk manufacturer, has reported net profit of NZ$202.9 million (US$120.12 million), compared with last year’s NZ$167.6 million.

The company reported a 21% jump in its full-year profit, driven by strong demand in China, and announced the acquisition of a manufacturing facility to expand its share in the Region.

Total IMF (infant milk formula) sales rose 10%, driven by a robust 17% growth in its English label offerings, while China label sales grew 3.3%.

EBITDA climbed 17.1% to NZ$274.3m, with the margin rising 0.4 percentage point to 14.4%.

“It has been an exceptional year for our infant milk formula business,” said CEO David Bortolussi.

In the ongoing financial year, the company expects net profit to be similar to fiscal 2025, while operating earnings margins are expected to be between 15% and 16%, higher than 14.4% reported in 2025

a2 Milk acquires Yashili New Zealand Dairy

Additionally, the company has announced the acquisition of Yashili New Zealand Dairy Co. Limited from Yashili International Group Limited, a subsidiary of China Mengniu Dairy Group.

The deal, valued at approximately US$167.06 million (NZ$282 million) on a debt- and cash-free basis, includes the purchase of the Pōkeno manufacturing facility located in New Zealand’s Waikato region.

The Pōkeno site is a key asset in the infant formula market, already holding two Chinese label infant milk formula (IMF) registrations, which are crucial for a2 Milk’s continued growth in China—a market that generates the majority of its annual revenue.

The facility has played a significant role in co-developing and producing a2 Milk’s English label formulas, including a2 Genesis and a2 Gentle Gold.

As part of its broader supply chain transformation strategy, a2 Milk plans to invest an additional NZ$100 million into the Pōkeno plant over the coming years to expand capacity and enhance production capabilities. This investment is expected to create over 100 new jobs, further boosting the local economy.

A2 Milk’s CEO and managing director, David Bortolussi, said: “The acquisition of the Pokeno manufacturing facility and related products represents a pivotal moment for The A2 Milk Company and the execution of our supply chain transformation strategy. The transactions enable the company to build a better, higher growth, lower risk, end-to-end business and deliver substantial benefits to shareholders.”

Simultaneously, a2 Milk is divesting its 75% stake in Mataura Valley Milk (MVM) to Open Country Dairy, alongside the 25% held by China Animal Husbandry Group.

Although the company anticipates a NZ$130 million loss from the sale, it views the move as a strategic reallocation of resources. MVM will continue supplying a2 Milk with A1 protein-free ingredients under a new supply agreement.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE