A2 Milk has upgraded its fiscal year 2026 revenue guidance, citing stronger-than-expected trading across its core product categories and favourable currency movements. The company, which specialises in A2 protein-type milk products, said its infant milk formula, other nutritional products, and liquid milk sales were all performing ahead of expectations. A weaker New Zealand dollar is also expected to positively influence reported sales and expenses. The net impact on EBITDA, after accounting for hedge losses, is not expected to be significant.
Tobias Yao, a portfolio manager at Wilson Asset Management, noted A2 Milk’s continued strong growth, highlighting the management team’s successful execution over the past few years. “We believe the strength of the brand continues to resonate with consumers both in Australia as well as China and A2 is well on its way to succeeding in other countries over time,” Yao said. His remarks reflect confidence in the company’s long-term prospects and brand strength.
The upgrade in revenue guidance signals positive momentum for A2 Milk, reinforcing its position in the competitive dairy and nutritional products market. While a weaker New Zealand dollar is projected to boost reported figures, the company maintains that the overall effect on earnings before interest, taxes, depreciation, and amortization will be neutral due to hedging strategies.
Despite the positive news regarding revenue projections, shares in A2 Milk experienced a slight dip, trading down 1.4 per cent in afternoon trade. Market reactions can often be complex and influenced by various factors beyond immediate company announcements.
