a2 Milk posts 44% profit drop, forecasts weak earnings

New Zealand's a2 Milk announced a 44% decrease in its full-year profit, falling short of analyst expectations. The company cited reduced revenue from its primary China-label infant milk formula product, attributing the decline to temporary supply chain disruptions that limited product availability.

For the year ended June 30, the dairy producer recorded a net profit attributable of NZ$113.6 million, a significant drop from NZ$202.9 million in the prior year. This result missed the Visible Alpha consensus estimate of NZ$121 million. However, on an underlying basis, a2 Milk reported a full-year profit of NZ$235.8 million, marking a 7% increase compared to the previous year.

The company forecasts weak annual earnings and projects revenue growth in the mid-single-digit percent range for fiscal 2027, citing ongoing supply-chain disruptions.