New Zealand's a2 Milk has reported a 44% drop in its full-year profit due to weaker sales of its China-label infant milk formula (IMF) product. Revenue from China-label IMF sales declined by 14% to NZ$544.3 million in the year ended June 30. The company's net profit attributable fell to NZ$113.6 million, missing the Visible Alpha consensus estimate of NZ$121 million.
Key Figures
On an underlying basis, a2 Milk reported full-year profit of NZ$235.8 million, 7% higher than last year. Revenue from its largest market, China & other Asia, rose 11.2% in the year to NZ$1.45 billion, led by higher sales of English-label IMF products.
Outlook
The company is focusing on 'regaining past users and accelerating new user recruitment' after supply chain disruptions left its key China-label IMF product out of stock. a2 Milk declared a final dividend of 9.5 New Zealand cents per share, down from the 11.5 cents a year earlier.