Summary
The a2 Milk Company reported revenue of approximately NZ$1.97 billion for FY2026, up more than 12% year-on-year. However,
sales of its China-label infant formula fell 14% year-on-year, primarily due to a supply chain crisis that led to acute spot inventory shortages in the fourth quarter. The company said the factors affecting supply have been resolved,
with new products expected to launch in the fourth quarter of calendar 2026.
Commentary
a2's China-label infant formula sales dropped 14% due to supply chain issues, highlighting the pressure on imported brands in China from tighter regulations and quality control upgrades. Domestic brands now account for 60% of China's infant formula market, making differentiation a key survival factor. For New Zealand SMEs, supply chain resilience and local compliance spending directly impact market share.
While the Pokeno plant gained registration and boosted capacity, regaining consumer confidence remains critical.
Keywords: a2 Milk Company, supply chain crisis, China-label infant formula, sales decline, FY2026, revenue, Pokeno plant, infant formula, China market
Source: East Money Network
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