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David Bortolussi reports a 44% decline in annual profit for a2 Milk following supply chain disruptions in China

New Zealand dairy producer a2 Milk reported a 44% decline in annual profit after supply problems left its main China-label infant formula out of stock. CEO David Bortolussi noted that while revenue increased by 12.4% to NZD$1.97 billion, the net profit after tax fell 5.8% to NZD$207.5 million. The disruption was caused by freight challenges, production backlogs, and additional customs requirements in the fourth quarter. The company acknowledged that many customers switched to competitor brands during the period of low availability. David Bortolussi stated that while the factors causing the disruption have been resolved, it will be challenging to regain early-stage infant formula users who were forced to switch brands. To rebuild confidence, the company is launching a traceability tool and new products in the first half of FY27. The administration announced that the company is focusing on China infant formula recovery and accelerating new user recruitment to stabilize market share.

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