Key facts
- a2 Milk reported a 44% fall in full-year profit.
- The company's profit missed estimates.
- Lower revenue from China-label infant milk formula contributed to the decline.
- Supply chain disruptions constrained product availability.
- Net profit attributable to shareholders was NZ$113.6 million.
New Zealand's a2 Milk announced a substantial 44% decline in its full-year profit, a result that did not meet market expectations. The primary driver for this downturn was lower revenue generated from its China-label infant milk formula product. The company cited ongoing supply chain disruptions as the key factor that constrained the availability of its products, thereby impacting overall sales and profitability. Consequently, the net profit attributable to shareholders for the full year was NZ$113.6 million. This performance highlights the challenges a2 Milk faces in navigating global supply chain complexities and maintaining consistent product availability for its key markets, particularly China.