The a2 Milk Company (ASX: $A2M) has released its financial results for the 6 months ended 31 December 2023. The company reported a 3.7% increase in revenue, led by strong growth in the China & Other Asia segment, partially offset by a decrease in the ANZ segment. The gross margin percentage stood at 46.7%, reflecting a 0.2ppts increase from the previous financial year. EBITDA increased by 5.0% to $113.2 million, primarily driven by revenue growth and reduced administrative and other expenses. The company's net cash at the end of the period was $792.1 million, up $34.9 million from the previous year.
The Company's revenue for 1H24 increased by 3.7%, driven by strong performance in the China & Other Asia segment. Despite challenges in the ANZ segment, the overall financial results reflect a positive trend. The Company remains committed to prioritizing investment in growth opportunities and maintaining a strong balance sheet. The China market update indicates a decline in the number of newborns, impacting the IMF market, but the Company expects a higher number of newborns in CY24. The Company's medium-term revenue ambition of ~$2 billion by FY26 is likely to be achieved by FY27 or later, given the challenging market conditions. The Company continues to focus on its strategic priorities to drive future growth and profitability.
The a2 Milk Company (ASX: $A2M) reported a 3.7% increase in revenue for 1H24, driven by strong performance in the China & Other Asia segment. Despite challenges in the ANZ segment, the Company's EBITDA increased by 5.0% to $113.2 million. The China market update reflects a decline in the IMF market, but the Company expects a higher number of newborns in CY24. The Company's medium-term revenue ambition of ~$2 billion by FY26 is likely to be achieved by FY27 or later, given the challenging market conditions. A2M remains focused on its strategic priorities to drive future growth and profitability, while maintaining a strong balance sheet and prioritizing investment in growth opportunities.