a2 Milk has come out swinging in the first half of FY25, delivering double-digit revenue growth, an upgraded full-year outlook, and a historic first dividend for shareholders. The company is making the most of opportunities in China and beyond, with a focus on brand investment, product innovation, and supply chain transformation to fuel future growth.
Revenue for the half climbed 10.1% to $893.8 million, with particularly strong performances in China and the US. Infant milk formula (IMF) saw 7.2% growth, with English label IMF up an impressive 13%, while China label IMF continued to gain market share despite temporary supply constraints. The company’s liquid milk business also had a strong showing, growing 11.2% in ANZ and 13.4% in the US, and its Mataura Valley Milk (MVM) external ingredient sales surged 31.9%.
EBITDA rose 5.0% to $118.9 million, though this included $8 million in additional airfreight costs to manage short-term supply issues. Net profit after tax (NPAT) also saw solid growth, rising 7.6% to $91.7 million, with earnings per share increasing to 12.7 cents.
But the biggest headline? a2 Milk has declared its first-ever interim dividend of 8.5 cents per share, fully imputed and franked, with a payout ratio of around 67% of NPAT. It’s a major milestone, reflecting the company’s confidence in its financial strength and future growth potential.
Gaining Ground in China and Beyond
China remains a key market, and a2 Milk is cementing its position as a Top-5 IMF brand, growing its market share to 5.3%—up from 4.9% in FY24. The growth is particularly impressive given the overall China IMF market declined by 6%. Strong online sales have helped drive momentum, and the company expects even better performance in the second half now that supply constraints have been resolved.
English label IMF is also making a comeback, posting 13% sales growth for the half. Demand surged after China’s Double-11 shopping festival, setting up a strong outlook for 2H25. The company is doubling down on premium offerings, launching a2 Genesis™, a super-premium product targeting the fast-growing HMO segment. At the same time, it’s expanding its fortified milk powder range, tapping into the growing demand for senior and kids’ nutrition.
Geographically, a2 Milk is also making moves, with a2 Platinum® now on shelves in Vietnam, and a2 Gentle Gold™ set to launch there in 2H25. Meanwhile, the US business continues to improve, with stronger profitability and market share gains in lactose-free and grass-fed products. The company is also progressing its US FDA application for long-term IMF market access, which could be a game-changer.
Building for the Future
Beyond product expansion, a2 Milk is transforming its supply chain to support future growth. The company has signed an agreement to establish an a2® Global R&D centre in China and has also started China-based production of fortified milk powder using a2 Milk® from its Mataura Valley Milk facility. Developing its own nutritional manufacturing capability remains a major priority, and while details are still under wraps, progress is expected this year.
CEO’s Take
CEO David Bortolussi is bullish on the company’s trajectory. “We’ve delivered another strong performance, and the momentum heading into the second half is exciting,” he said. “That’s why we’re upgrading our FY25 revenue and earnings guidance.”
The company’s success in China is particularly notable. “We’re now a Top-5 brand, and our sales grew 7% in a market that actually shrank. That’s a huge achievement.” He also highlighted a2 Milk’s strength in liquid milk, which continues to gain market share in both ANZ and the US.
Perhaps the most significant moment for a2 Milk this half was the dividend announcement. “Declaring our first-ever dividend is a big milestone. It recognises the progress we’ve made and rewards our shareholders for their support,” Bortolussi said.
What’s Next?
With China market share growing, English label IMF rebounding, and innovation ramping up, a2 Milk is well-positioned for an even stronger second half. The company has also upgraded its full-year revenue growth guidance, now expecting low-to-mid double-digit percentage growth, up from the previous mid-to-high single-digit forecast.
Looking ahead, securing additional China IMF registrations and developing its own nutritional manufacturing capabilities will be crucial for long-term success. While details are still under wraps, Bortolussi hinted at meaningful progress in the coming months.
For investors, a2 Milk’s first dividend is a defining moment, showing that the company isn’t just focused on growth—it’s also committed to delivering returns to shareholders. With momentum building across multiple markets, the best may be yet to come.
