Source: Radio New Zealand
The company said it was experiencing temporary in-market product availability issues. Getty Images
Infant milk formula (IMF) exporter a2 Milk says supply chain disruptions are making it difficult to meet Chinese demand, which is expected to see its full-year profit outlook fall short of expectations.
In a market statement, the company said it was experiencing temporary in-market product availability issues.
The issues involved the availability and cost of freight, production delays, longer lead times to meet changes to quality standards and changes to customs clearance requirements.
The company had revised its FY26, last updated in February, to reflect the market conditions.
- Revenue growth of low to mid double-digit percent versus FY25
- Gross profit margin to be about 14 percent to 14.5 percent (previously 15.5 percent to 16 percent)
- Depreciation and amortisation to be approximately $20 million (previously $20m to $24m)
- Interest income to be lower due to lower market rates and net transaction cash outflows
- Net profit to be little changed or down on FY25 (previously up)
- Capital expenditure of approximately $60 to $80m
The company said a range of key risks could materially impact expected revenue and earnings outcomes including, but not limited to, further delays in freight and clearance timing, trading upside and downside, challenging macroeconomic conditions, China IMF category dynamics and competitive intensity, product and supply related risks, cross border trade, foreign exchange movements, changes in interest rates, farmgate milk pricing and other commodity prices, regulatory changes and the Middle East conflict.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
