Core Viewpoint - a2 Milk Company reported strong financial performance for the fiscal year 2025, with significant growth in revenue and profit metrics, alongside plans for dividend distribution to shareholders [1][5]. Financial Performance - Revenue increased by 13.5% year-on-year to NZD 1.902 billion [1] - Net profit attributable to owners rose by 21.1% to NZD 202.9 million [1] - EBITDA grew by 17.1% to NZD 274.3 million, with an EBITDA margin of 14.4%, up by 0.4 percentage points [1] - The company plans to distribute its first annual dividend of NZD 0.20 per share, with a payout ratio of approximately 71%, totaling NZD 145 million [1] Market Share and Product Performance - Overall revenue from infant formula increased by 9.9%, with specific segments showing varied growth: 3.3% for standard infant formula, 17.2% for English standard infant formula, and 14.4% for liquid milk [2] - Revenue in China and other Asian regions grew by 13.9% to NZD 1.302 billion, despite an overall decline in the Chinese infant formula market [2] - Market share in China increased from 7.1% in FY2024 to 8.0% in FY2025 [2] - The company launched three new products targeting the elderly demographic, focusing on health needs [2] Strategic Initiatives - a2 Milk Company is expanding its production capacity and optimizing its supply chain, including the acquisition of a factory in New Zealand for NZD 282 million [4] - The newly acquired factory can produce up to 52,000 tons of infant formula annually and will support the company's supply chain transformation strategy [4] - The company plans to invest NZD 100 million in the new factory and create over 100 new jobs [4] - a2 Milk Company aims to continue focusing on the Chinese market and expanding into emerging markets, with revenue growth expected in the high single digits for FY2026 [5]

Core Insights - a2 Milk Company reported a 13.5% increase in annual revenue to NZD 1.902 billion for the fiscal year ending June 30, 2025, with a net profit after tax (NPAT) growth of 21.1% to NZD 202.9 million [1] - The company experienced significant growth in the Chinese and other Asian markets, with a revenue increase of 13.9% to NZD 1.302 billion, and a 22.5% growth in the U.S. market, while the Australia-New Zealand region remained stable [1] - The infant formula segment grew by 9.9%, with the a2 Platinum infant formula series generating NZD 632.5 million, a 3.3% increase year-on-year [1] Regional Performance - In the Chinese and other Asian regions, the revenue from family nutrition products surged by 33.1% to NZD 110.3 million [2] - The sales of English standard products in China and other Asian regions reached NZD 559.1 million, reflecting a 24.9% year-on-year growth [1][2] - The overall cross-border infant formula market grew by 11.9% year-on-year, driven by increasing market demand and a trend towards premiumization, with the cross-border segment's market share rising from 14% in FY22 to 19% [1] Strategic Developments - The company acquired an integrated nutrition product manufacturing facility in Pokeno, New Zealand, from Yashili New Zealand Dairy Co., Limited, for approximately NZD 282 million [2] - Following the acquisition, a2 Milk Company plans to invest around NZD 100 million in the new Pokeno facility to enhance production capacity and create over 100 new jobs [2] - The company aims to secure product registrations for two new national standard infant formula products, with potential for a third registration in the future [3]