A2 Milk Profit Climbs 21% as NZ$282 Million Plant Deal Bolsters China Push

New Zealand-based a2 Milk Co. reported a 21% jump in net profit to NZ$202.9 million for the year ended June 2025, edging past analyst expectations and driven by continued demand for its infant-formula products in China. Group revenue rose 13.5% to NZ$1.90 billion, with sales in the China & Other Asia segment up 14% to NZ$1.30 billion. Total infant-formula sales increased 10%, supported by a 17% rise in English-label volumes and a 3.3% gain in China-label products. To secure additional capacity and registrations in its largest market, a2 Milk agreed to buy a New Zealand nutritional manufacturing facility from a unit of China Mengniu Dairy for NZ$282 million. The plant already holds two China-label registrations, which the company said will expand its access to the country’s NZ$23 billion registered formula market. a2 Milk will fund the purchase in part by selling its 75% stake in Mataura Valley Milk for about NZ$100 million, recognising an estimated NZ$130 million loss on the divestment. If both transactions close, the board plans to return NZ$300 million to shareholders via a fully-franked special dividend, in addition to a final ordinary payout of 11.5 New Zealand cents per share. Management forecast similar net profit this fiscal year and an operating margin of 15–16%, up from 14.4%. The shares climbed as much as 6.5% to NZ$9.29 in early trading following the announcements.